Paints major Berger Paints on Wednesday reported a 19.68 per cent year-on-year jump in its consolidated net profit to ₹222.62 crore for the fourth quarter last fiscal from ₹186.01 crore for the same period last year.
The company’s revenue grew 3.14 per cent y-o-y to ₹2,520.28 crore (₹2,443.63 crore), according to a stock exchange filing.
The company said a healthy double-digit volume growth was registered for the quarter. However, value growth moderated on account of price reduction.
- Also read: Berger Paints’ MD & CEO sheds light on price reductions, growth drivers, and market competition
The company’s board has recommended payment of dividend of ₹3.50 (350 per cent) per equity share of the face value of ₹1 each fully paid-up for the financial year 2023-24, subject to approval of the shareholders at the 100th Annual General Meeting.
“On the profitability front in Q4FY24, while the gross margins were maintained the EBITDA reduced due to the one-off effect of subsidy received in Q4FY23, negative operating leverage on account of fixed cost on lower value base and the incremental operating cost of the new Sandila plant as well as the conscious call taken on brand building efforts leading to an increased advertisement expenditure,” said Abhijit Roy, Managing Director & CEO, Berger Paints India.
The company’s EBITDA (excluding other income) for Q4FY24 was ₹325.1 crore (₹342.5 crore), representing a decline of 5.1 per cent y-o-y.