Berger Paints India Ltd. has announced strong results for the January-March 2024 period, with impressive financial growth. The company reported a volume growth of 7.4%, reflecting its strong position in the paint industry despite a challenging market environment. The net profit for the quarter rose by 18%, reaching ₹263 crore, compared to ₹222.6 crore in the same period last year. This reflects Berger Paints’ ability to deliver value even in tough times.

Revenue Growth and Operational Highlights

For the quarter, Berger Paints' revenue from operations stood at ₹2,704 crore, marking a 7% growth from ₹2,520 crore in the same period last year. This revenue growth can be attributed to the robust performance of the decorative segment, which saw high single-digit volume growth. Despite increased competition in the market, Berger Paints managed to improve its market share in the decorative segment during the Q4 FY24.

The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 22%, reaching ₹427.7 crore, compared to ₹351 crore in the previous year. This indicates that Berger Paints was able to improve its operational efficiency and cost management. The EBITDA margin also improved to 15.8% from 13.9% last year, further reinforcing the company’s solid financial position.

Dividend Announcement and Shareholder Returns

Berger Paints also announced a dividend of ₹3.80 (380%) per equity share for the financial year 2024-25, which is subject to approval by the shareholders at the upcoming 101st Annual General Meeting. This move indicates the company’s commitment to rewarding its investors, in line with its healthy cash position. The company currently stands at zero gross debt, with its cash reserves further improving at the end of the quarter.

Management Comments on Market Conditions

Abhijit Roy, Managing Director and CEO of Berger Paints, acknowledged that the company faced tough market conditions during the quarter. Despite muted urban demand and increased competition intensity, the company was able to achieve high single-digit volume growth. The sequential improvement in value performance was supported by the reduced impact of price reductions and a strong momentum in the premium emulsion category.

International Operations and Market Performance

On the international front, Berger Paints' operations in Poland and Nepal saw good topline performances. The Nepal operations, in particular, saw a turnaround due to improved business conditions and a low base in the previous year. This positive performance from international markets reflects the company's expanding footprint and its ability to tap into global demand for quality paints.

Future Outlook and Market Expectations

Looking ahead, Berger Paints remains optimistic about demand in the coming months. The company anticipates favorable conditions from the government’s infrastructure spending and budget announcements, which should boost demand for decorative paints. Furthermore, the company expects a good monsoon season, which traditionally aids in driving the demand for paint products. With strong growth in both domestic and international markets, Berger Paints is poised for continued success.

Stock Market Performance

After the announcement of its Q4 earnings, Berger Paints India Ltd. saw a 2.58% increase in its stock price, reaching ₹556.90 per share. The stock has risen by nearly 22% so far in 2025, reflecting strong investor confidence in the company’s financial health and growth potential.

Conclusion

Berger Paints has shown a solid performance in the fourth quarter, delivering strong volume growth, net profit increase, and improved EBITDA margins. The company’s commitment to improving operational efficiency, expanding its market share, and rewarding shareholders with a dividend has bolstered its position in the industry. With strong international performance, particularly in Poland and Nepal, and optimistic forecasts for the future, Berger Paints continues to strengthen its reputation as one of India’s leading paint companies. The company’s strategic focus on premium emulsion categories, coupled with its efforts to adapt to changing market dynamics, positions it well for continued growth and profitability in the upcoming financial year.

The Upcoming IPOs in this week and coming weeks are Integrity Borana Weaves, Belrise Industries, Wagons Learning.

The Current active IPO are Accretion Pharmaceuticals, Integrity Infrabuild Developers and Virtual Galaxy Infotech.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.