Berger Paints India registered an almost flat growth in standalone net profit at around ₹191 crore for the quarter ended September 30, 2022, against ₹192 crore same period last year.

Revenue from operations on a standalone basis increased by nearly 23 per cent at ₹2,374 crore during the quarter under review against ₹1,938 crore same period last year.

EBITDA (excluding other income) for the quarter ended September 30, 2022 was around ₹318 crore (close to ₹304 crore).

Net profit for the quarter ended 30th September 2022 was ₹190.68 crore against ₹191.79 crore in the corresponding quarter of last year, representing a decline of 0.58 per cent over the corresponding quarter of last year

Raw material

Raw material as per cent of sale went up mainly on account of material price increase, which was partly offset by increase in product prices. No significant product price increase was taken in Q2 on account of lower trajectory of some raw materials which impacted profitability, the company said in investor presentation uploaded on BSE.

Profitability for the quarter was also impacted on account of inclusion of one time subsidy income of around ₹19 crore in corresponding quarter last year, it said.

While Tier I, Tier II and Tier III cities showed high double-digit growth over corresponding quarter last year, the rural markets grew at a slower pace especially in north and central regions.

Urban markets

“Demand in urban markets looks encouraging; hoping for an uptick in rural demand on the back of good monsoon. Mix improvement is likely in the coming quarters supported by increased sale of exterior coatings. Industrial sales outlook remain strong on the back of growth in auto sector and government spending in infrastructure. Key raw material prices like monomers and solvents softened towards the end of Q2 and likely to remain so in Q3 and Q4,” the company said.

The company’s new manufacturing facility at Sandila in Uttar Pradesh is expected to commence commercial production shortly for water base, solvent base, putty, stainer, colorant and resin. The estimated outlay is over ₹1,000 crore and the potential increase in capacity is close to 33 per cent.

The company has also acquired 30 acres of land in Panagarh, West Bengal for manufacture of construction chemicals, resin and industrial products. The estimated outlay on the project is around ₹175 crore.

It is also looking for further brownfield expansions in Hindupur (for solvent and resin) and Rishra (emulsion and water base expansion), it said.

The company’s scrip closed at ₹583.45, down by 0.97 per cent on the BSE on Thursday.

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