Berger Paints India Ltd (BOM:509480) Q4 2025 Earnings Call Highlights: Strong Volume Growth and ...

GuruFocus News

Thu, May 15, 2025, 2:00 AM 3 min read

Release Date: May 14, 2025

For the implicit transcript of the net call, delight notation to the afloat net telephone transcript.

• Berger Paints India Ltd (BOM:509480) reported a beardown Q4 with a 7.4% summation successful measurement and a 4.4% emergence successful gross from operations.

• The institution gained marketplace share, reaching an estimated 20.3%, reflecting resilient competitory positioning.

• Operating nett roseate by 19.8%, supported by gross borderline enlargement and effectual outgo power initiatives.

• The decorative conception delivered precocious single-digit measurement growth, supported by an improved merchandise premix and marginal terms increases.

• Construction chemicals and waterproofing segments continued to outperform, maintaining beardown traction crossed cardinal markets.

• General concern and pulverization coating income were muted, indicating challenges successful these segments.

• The institution faced aggravated competition, which could interaction aboriginal marketplace stock gains.

• Employee costs are expected to stay elevated astatine astir 12-13%, impacting wide profitability.

• The interaction of anti-dumping duties connected rutile could summation earthy worldly costs, affecting margins.

• The wide manufacture maturation was antagonistic oregon flat, indicating a challenging marketplace environment.

Q: Your measurement maturation has been higher than different listed players. What bash you property this to, and bash you spot volumes returning to double-digit maturation successful FY26? A: The measurement maturation is owed to respective factors, including amended show successful municipality areas and circumstantial merchandise categories similar operation chemicals and waterproofing. While reaching double-digit maturation is challenging, we are moving successful that absorption and aspire to execute it if conditions stay stable. - Avijit Roy, Managing Director and CEO

Q: There's been a crisp betterment successful subsidiary performance. What is driving this growth, and what are your expectations for FY26? A: The betterment is driven by beardown show successful the vigor conservation segment, peculiarly successful Poland and the UK, and a betterment successful Nepal. We expect this maturation to continue, particularly successful the car refinishing category. - Avijit Roy, Managing Director and CEO

Q: Regarding worker costs, should we expect maturation to normalize, oregon volition it proceed astatine a higher rate? A: Employee costs volition stay somewhat elevated astatine astir 12-13% maturation owed to the request for much manpower successful effect to intensified competition. However, it volition not instrumentality to the 9-10% levels. - Avijit Roy, Managing Director and CEO

Q: Can you supply much colour connected marketplace stock gains, particularly successful municipality markets? A: We person gained marketplace stock adjacent erstwhile accounting for competitors similar Birla. Our gains are proportionate crossed regions, with immoderate areas and merchandise categories performing better. We expect to support and somewhat amended our marketplace share. - Avijit Roy, Managing Director and CEO