In This Article:
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Revenue Growth: Flat year-on-year, with a slight decline of 0.4% in sales growth for Q2.
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Gross Margin: Highest in the last 10 quarters at 40.4% standalone and 41.7% consolidated.
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Operating Margin: Maintained within the guided range of 15-17%, specifically at 15.8% for the quarter.
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Volume Growth: 23.6% for the quarter, with a half-yearly growth of 7.8%.
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Net Cash Position: Decreased to 242 crore by September 2024, after a dividend outflow.
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Retail Expansion: Added 2,200 retail touch points and over 2,000 color bank machines in the quarter.
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Decorative Business: Recorded single-digit volume growth, with premium segments performing well.
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Industrial Business: Double-digit volume growth in protective coatings; flat growth in automotive and general industrial segments.
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Consolidated Income: Total income from operations grew by 0.3% for Q2.
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Profitability: PAT declined by 6.1% for Q2; consolidated PAT at minus 7.9%.
Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Berger Paints India Ltd (BOM:509480) achieved the highest gross margin in the last 10 quarters, with 40.4% in standalone and 41.7% in consolidated results.
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The company recorded a double-digit volume growth in premium and luxury products, indicating a strong market demand for higher-end offerings.
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Berger Paints India Ltd (BOM:509480) continued aggressive network expansion, adding 2,200 retail touchpoints and installing over 2,000 color bank machines.
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The company maintained a strong net positive position at the end of the quarter, showcasing financial stability.
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The protective and infrastructure business recorded good growth, contributing positively to the company's overall performance.
Negative Points
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The company's top line remained almost flat year-on-year, impacted by extended monsoon and flooding in key markets.
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Operating margin was lower due to higher manpower costs for urban initiatives and increased advertisement spending.
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The decorative business recorded only single-digit volume growth, affected by adverse weather conditions.
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Consolidated performance in Poland suffered due to one-off costs, impacting profitability.
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The company's subsidiary in Nepal experienced de-growth in both top line and profitability due to a credit crunch in the economy.
Q & A Highlights
Q: What is Berger Paints' strategy regarding the potential sale of a major MNC player in the paint industry, and how does the company plan to maintain its high gross margins amidst rising competition? A: Abhijit Roy, CEO, stated that Berger Paints is waiting for clarity on the MNC's intentions before deciding on any strategic moves. Regarding competition, he emphasized that the paint industry has always been competitive, and Berger Paints plans to maintain and potentially improve its margins by launching more differentiated products.