Berger Paints India Ltd, an Indian multinational paints and coatings manufacturer announced its results for the third quarter and nine months ended Dec 31, 2022.
Q3 Results- QoQ
The company’s net profit dropped by 8.4% to Rs 2.01 billion for the period ended Dec 31, 2022 as against net profit of Rs 2.19 billion for the previous quarter.
Net sales marginally grew by 0.78% to Rs 27.04 billion during the period ended Dec 31, 2022 as compared to Rs 26.83 billion during the previous quarter.
Q3 Results- YoY
The company reported 20.5% drop in net profit to Rs 2.01 billion for the period ended Dec 31, 2022 as against net profit of Rs 2.52 billion for the prior-year quarter.
Net sales grew 5.4% to Rs 27.04 billion during the period ended Dec 31, 2022 as compared to Rs 25.66 billion during the prior-year quarter.
The paint maker said that due to capacity constraints, the company had to build up inventory in anticipation of the festival season and the inventory lasted throughout the period. Hence the benefit of lower RM prices could not be realised which impacted gross margins, leading to a decline in profitability.
“Mix impact on account of lower sales of exterior emulsions due to extended monsoon, scale impact on overheads due to lower than anticipated growth in sales, and mark to market impact of exchange depreciation also impacted the profitability, Berger Paints said in a statement.
9 Months – YoY
The company reported 10.1% growth in net profit to Rs 6.73 billion for the period ended Dec 31, 2022 as against net profit of Rs 6.12 billion for the prior-year 9 months period.
Net sales increased 23.3% to Rs 81.6 billion during the period ended Dec 31, 2022 as compared to Rs 66.19 billion during the 9 months period last year. Berger Paints India Ltd is an Indian multinational paint company engaged in the manufacture and sale of paints and coating products.