Berger Paints India reported 20.48% decline in consolidated net profit to Rs 201.17 crore for the quarter ended 31 December 2022 as against Rs 252.97 crore in the corresponding quarter of the last year.
Revenue from operations in Q3 FY23 was Rs 2,693.59 crore, up 5.60% YoY. The company had recorded revenues of Rs 2,550.77 crore in Q3 FY22.
In the Decorative Business, the segment showed decent growth in the quarter in-spite of extended monsoon, very high base effect and short festive season compared to the corresponding quarter last year. However, growth progressively improved with a double-digit growth in December.
The business recorded volume sales growth of 6.6% in Q3 FY23 as against 11.2% in Q3 FY22. Values sales growth during the quarter was 7.2% as compared with 21.2% in the same period last year.
In the Industrial Business segment, GI and Auto business showed good growth in the quarter. Protective and infrastructure business continued its double-digit growth aided by infrastructure spending. However, Powder Coatings business line had significant degrowth on account of lower sales to the Fan industry.
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On the cost front, Material Costs rose by 10.89% YoY, Employee Cost increased by 13.36% YoY and Other Expenses were higher by 6.65% YoY during the period under review.
EBITDA (excluding other income) for the quarter ended 31 December 2022 was Rs 349.65 crore as against Rs 392.11 crore in the corresponding quarter of the last year, representing a decline of 10.83% over the corresponding quarter of last year.
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.
Berger Paints India is engaged in retail, decorative and industrial painting solutions.
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