Berger Paints India (BERGEPAINT) Q4 00/01 earnings summary

Executive summary

• FY01 sales rose 11% to Rs 5,622 million; profit before tax reached Rs 329 million and profit after tax Rs 285 million, despite pressure on margins from petroleum-based input costs.

• Retail business grew more strongly than other business lines; expansion of Colorbank and rural product launches supported growth initiatives.

Financial highlights

• Sales were Rs 5,622 million vs Rs 5,050 million in FY00; operating profit before depreciation, interest and exceptional items was Rs 497 million vs Rs 427 million.

• Profit before tax was Rs 329 million, up 22% YoY; profit after tax was Rs 285 million, up 20% YoY.

• Exceptional expenditure under the voluntary retirement scheme was Rs 1.219 million, vs Rs 14.437 million in FY00; PBT before the item was Rs 330.378 million.

• Proposed dividend was 50% or Rs 133 million, vs 40% or Rs 106 million in FY00.

Outlook and guidance

• Ambitious growth plans targeted untapped markets and business re-engineering; cost control, supply-chain management and workforce productivity were priority actions.

• Year-to-date performance was encouraging; management expected satisfactory current-year performance, barring unforeseen circumstances.