Berger Paints (I) FY24 Annual Earnings Summary
4 quarters covered · ₹11,199 Cr revenue · ₹1,170 Cr PAT · 16.8% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Risks flagged during the year
Entry of new players (e.g., Grasim) could pressure market share; management acknowledged potential losses but plans to offset via distribution gains.
Q1 FY24 · mediumRegional competition has rebounded and discounting has increased, especially in enamels, which could pressure margins.
Q1 FY24 · mediumIf raw material prices rise, margins could compress from current elevated levels; management noted uncertainty beyond Q3.
Q2 FY24 · mediumManagement flagged that geopolitical tensions could increase raw material costs, impacting profitability.
Q2 FY24 · mediumManagement noted a downturn in Kerala demand without clear reason, which could persist and affect overall growth.
Q2 FY24 · mediumBJN Nepal reported negative value growth due to economic downturn and construction slowdown, expected to remain negative in Q3.
Q3 FY24 · mediumJanuary price cuts of ~2.7% may compress gross and EBITDA margins in Q4, partially offset by lower ad spends.
Q3 FY24 · mediumBJN Nepal saw degrowth in top line and profitability due to economic downturn and liquidity issues; situation likely to remain tough.
Q3 FY24 · mediumUnorganized players are returning as raw material prices cool, potentially slowing organized sector growth.
Q4 FY24 · mediumPrice cuts of ~5% and faster growth of low-value products may continue to suppress value growth until December 2024, impacting revenue and profitability.
Q4 FY24 · mediumNew competitors entering the paint market could increase promotional spending and pressure margins, though management downplays near-term impact.
Q4 FY24 · mediumGeopolitical situation could cause volatility in raw material prices, affecting gross margins.
What changed through the year
Q1 FY24 · Double-digit revenue growth for FY24
Management expects to end the year with double-digit revenue growth, supported by positive monsoon, infrastructure spend, and extended festive season.
Q1 FY24 · EBITDA margin to sustain around 17-18%
Management expects EBITDA margin to hover around 17-18% for the year, with Q1 at 18.8% seen as slightly elevated due to benign raw materials.
Q1 FY24 · Double-digit value growth for HTP and Public Coatings in Q2 FY24
Subsidiaries HTP and Public Coatings are expected to deliver double-digit value growth in Q2 FY24, driven by improved demand and base effects.
Q1 FY24 · Net debt to become nearly zero by end of FY24
Net debt has reduced to INR 243 crore and is expected to be nearly zero by the end of the fiscal year.
Q2 FY24 · Double-digit volume growth expected in Q3 FY24
Management maintains double-digit volume growth outlook for Q3, driven by festive season and rural demand recovery.
Q2 FY24 · Profitability to sustain in Q3 on moderation of raw material prices
EBITDA margin expected to sustain around current levels, though geopolitical risks could impact commodity prices.
Q2 FY24 · Panagarh plant completion by end of 2025/early 2026
New plant in Panagarh for industrial paints and construction chemicals with 3,500 KL/month capacity to be completed by end of 2025 or early 2026.
Q2 FY24 · Odisha greenfield facility completion by end of 2027
Greenfield facility near Bhubaneswar for decorative and industrial paints expected to be completed by end of 2027.
Q3 FY24 · EBITDA margin to remain in 15-17% range
Management reiterated guidance that EBITDA margin will stay within 15-17% bracket, balancing market share and profitability.
Q3 FY24 · Price cut of ~2.7% in January 2024
Berger matched industry price cuts in January, impacting Q4 revenue by ~2.7%.
Q3 FY24 · Demand momentum to continue in Q4
Expects demand momentum to continue in decorative segment on rural improvement; automotive double-digit growth to sustain.
Q3 FY24 · Operating profit growth may taper in Q4
Operating profit growth may moderate in Q4 vs Q3 due to price cuts, but still positive YoY.
Q4 FY24 · Double-digit volume growth expected in Q1 and FY25
Management expects decorative business to maintain double-digit volume growth for Q1 and full year FY25, with slightly lower value growth due to price cuts.
Q4 FY24 · EBITDA margin to remain in 15%-17% range
Management reiterated its comfort range of 15-17% EBITDA margin, with any upside likely reinvested in advertising.
Q4 FY24 · 8,000 Color Bank machines to be installed in FY25
Targeting installation of 8,000 new Color Bank machines in FY25, up from 7,100 in FY24.
Q4 FY24 · Khurda plant operational by Dec 2026-Mar 2027
Greenfield plant in Khurda, Odisha, expected to become operational between December 2026 and March 2027.