InvestorQ : How did you find the Dec-20 quarter results of Berger Paints?
Dhwani Mehta made post

How did you find the Dec-20 quarter results of Berger Paints?

Dilmini Mercia answered.
11 months ago

Berger Paints reported a very solid 51% growth in profit after tax at Rs.275 crore in the Dec-20 quarter. This was largely due to tweaking of the working capital components favourably which was instrumental in reducing the funds locked up in the working capital cycle. This freed up more funds and reduced the cost of inventories.

Revenues for the December 2020 quarter were up by 25% at Rs.2,118 crore. This growth was largely led by its sharp focus on the decorative paints business. Berger saw sharp pick-up in its high-margin decorative paints business with its recent focus more towards home solutions, which permits a more comprehensive ownership of the customer experience.

Berger Paints witnessed its operating margins or OPM expand from 14.62% in Dec-19 quarter to 17.19% in Dec-20 on the back of better operating metrics. The operational leverage combined with lower interest costs in the quarter resulted in the growth in PAT. As a result, the PAT margins of Berger Paints also improved from 10.75% in Dec-19 quarter to 12.97% in Dec-20 quarter.