Companies

Berger sees standalone net dip in q2

Our Bureau November 1 | Updated on November 01, 2018 Published on November 01, 2018

Berger Paints reported a near 4 per cent decline in standalone net profit to ₹102 crore for the quarter ending September 30, 2018. The net profit in the year ago period stood at ₹106 crore.

Revenue for quarter under review increased 16 per cent, year-on-year, to ₹1330 crore.

According to Abhijit Roy, MD and CEO, Berger Paints India Ltd had reported a ₹6 crore dividend income from Nepal operations in Q2FY18 (added to other income) which ultimately had an impact on the operating profit.

This apart, margin pressures remain because of which the company is mulling a 1.75 per cent price hike in decorative paints, effective December 1.

“Despite a 16 per cent revenue increase, standalone profits remained subdued. Moreover, raw material cost too has gone up,” he said.

During the quarter, cost of raw material consumed increased by 48 per cent, year-on-year, to ₹820 crore.

On a consolidated basis, Berger reported a 5 per cent increase in net profit to ₹117 crore for Q2FY19; as against the ₹111 crore in corresponding quarter last fiscal.

The consolidated revenue from operations grew 16 per cent, year-on-year, to ₹1490 crore.

 

Published on November 01, 2018
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