Berger Paints Q4 net down 15.6% to Rs 186 crore, Revenue up 11.7%

New Delhi: Berger Paints India Ltd on Monday reported a 15.56 per cent decline in its consolidated net profit to Rs 186.01 crore for the fourth quarter that ended on March 31, 2023, due to a loss from a fire incident at its Goa plant.

The company had posted a net profit of Rs 220.29 crore in the January-March period a year ago, Berger Paints said in a regulatory filing.

Its revenue from operations was up 11.7 per cent at Rs 2,443.63 crore during the quarter under review as against Rs 2,187.51 crore in the year-ago period.

"There was a fire in the factory of Berger Becker Coatings Private Ltd in Goa, a joint venture company of the Group. There was no casualty due to the fire. The Group's share of the financial impact of the loss due to fire amounting to Rs 25.35 crores has been duly recognised, following principles of prudent accounting," the company said in its earning statement.

An insurance claim for the purpose of recovery has been submitted and is under process, it added.

In Q4 "gross margins showed improvement over the corresponding quarter last year and sequentially on the back of lower raw material prices," it added.

Berger Paints' total expenses were at Rs 2,178.58 crore, up 13.73 per cent in Q4/FY23 as against Rs 1,915.43 crore. Its total income in the March quarter was at Rs 2,458.70 crore, up 11.42 per cent.

For the fiscal year ended March 2023, Berger Paints' net profit was up 3.3 per cent at Rs 860.40 crore. It had reported a net profit of Rs 832.95 crore in the previous fiscal.

Its consolidated revenue from operations was at Rs 10,567.84 crore in FY23, 20.61 per cent higher than the previous fiscal year.

In FY23 "India Operations Topline almost touched Rs 10,000 crore" and gained Market Share during the year.

Over the outlook, the company said operating margins are expected to improve in Q1/FY24. "We expect gross margin to hold at the same level going forward," it said.

Shares of Berger Paints India Ltd on Monday settled at Rs 629.25 on BSE, down 0.73 per cent from the previous close.