Berger Paints on Wednesday reported a consolidated net profit of Rs 354.4 crore for the quarter ended June 30, marking an increase of 39.8 per cent compared with the corresponding period a year ago driven by favourable raw material costs and operating efficiency. 

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Its income came in at Rs 3,029.5 crore for the first quarter of the current financial year, as against Rs 2,759.7 crore for the year-ago period, according to a regulatory filing. 

Both net profit and revenue exceeded analysts' estimates. According to Zee Business research, the paintmaker was estimated to report a quarterly net profit of Rs 317 crore and revenue of Rs 2,978 crore.

It reported Rs 556.8 crore in earnings before interest, taxes, depreciation and ammortisation (EBITDA) for the quarter ended June 2023 as against Rs 404.8 crore for the three months to June 2022. Zee Business analysts had pegged the company's EBITDA at Rs 514 crore.

The company's cost of materials consumed contracted 8.7 per cent on a year-on-year basis to Rs 1,481 crore.

“Berger Paints continued to deliver on its promise of excellence and outperformed the market. The decorative business saw double-digit growth both on value and volume fronts on high bases. Our operating profit to sales percentage also increased substantially to 18.8 per cent, a growth of 37.5 per cent and a two-year CAGR of 52.5 per cent. We usually are in the range of 16-18 per cent of operating profits and the Q1 performance has surpassed that range. Decorative registered volume growth in the mid-teens and double-digit value growth,” said Abhijit Roy, MD and CEO, Berger Paints. 

"We continue to focus on network expansion and invest in our brands. All our differentiated products like Anti Dust, Easy Clean and Longlife continue to grow handsomely. With normal monsoons ahead and an extended festive season, we are gearing up for exciting times ahead," he said. 

The company's board approved a 1:5 (one for five) bonus, subject to shareholders' nod. 

Berger Paints shares finished 1.3 per cent lower at Rs 701 apiece on BSE minutes after the earnings announcement, having fallen as much as 3.3 per cent during the session. 

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