Berger Paints India (BERGEPAINT) Q4 01/02 earnings summary

Executive summary

• FY02 sales grew 7% to Rs 6,016.5m amid an industrial slowdown; profit after tax rose 10% to Rs 313.9m, including Rs 9.2m of VRS expenditure.

• Cost initiatives, decorative-brand advertising and the acquisition of ICI India’s motor and industrial paints business shaped operations and the growth outlook.

Financial highlights

• Sales were Rs 6,016.5m versus Rs 5,622.0m; profit before depreciation, interest and exceptional item was Rs 542.9m versus Rs 497.1m, up 9%.

• PBT was Rs 346.2m versus Rs 329.2m; excluding Rs 9.2m VRS expense, PBT before exceptional item was Rs 355.5m versus Rs 330.4m.

• PAT rose to Rs 313.9m from Rs 284.9m; basic and diluted EPS was Rs 11.81 versus Rs 10.72.

• Net sales, excluding excise, were Rs 5,249.5m; operating profit was Rs 542.9m and other income was Rs 72.5m.

Outlook and guidance

• Year-to-date performance was encouraging; directors expected improved growth and profitability in FY03, barring unforeseen circumstances.

• Strategies focused on growth, working-capital improvement and customer service through IT, alongside cost reduction and production-efficiency measures.

• Lower prices for certain pigment, emulsion and solvent inputs were passed to consumers through price reductions in enamel paints and wall coatings.