Berger Paints
Berger Paints India had a good run yesterday on the bourses, thanks to its good and stable Q2FY16 numbers. The MNC posted consolidated net sales of Rs.1163 crore, up 5.5% (YoY). EBITDA was up 23% at Rs.154 crore and margins improved vastly from 11.34% to 13.24%. Interestingly, though raw material costs, thanks to the fall in crude prices, showed a 4.5% drop, overall costs rose 4%.
The company ended the quarter with a net profit of Rs.89 crore, up 33% and H1FY16 net profit was at Rs.166 crore, which was 63% of FY15 of net profit. Annualised EPS for the fiscal (Re.1 face value) stands at Rs.5. Typical of MNCs, reserves stands high at Rs.1190 crore but unlike most MNCs, it is not debt free. The company’s debt as at 30th Sept 2016 stands at Rs.572 crore, down 6%. Interest outgo has come down 33%. Q3 is usually the high season for paint companies and that could give us a better picture of how much higher the company will end Fy16.