Berger Paints India (BERGEPAINT) Q4 04/05 earnings summary

Executive summary

• FY05 delivered steady growth across retail and industrial segments; standalone net sales rose 23% YoY to Rs 9,476m and consolidated sales rose 21% to Rs 9,827m.

• Standalone PAT increased 18% to Rs 521m; consolidated PAT was Rs 551m. Current-year results include the amalgamated BAICL business and are not directly comparable with FY04.

Financial highlights

• Standalone net turnover was Rs 8,246m versus Rs 6,706m; PBT before exceptional items was Rs 720m versus Rs 615m.

• Standalone PBT was Rs 663m and PAT Rs 521m, versus Rs 614m and Rs 440m; exceptional expenditure was Rs 57m for VRS and past-service gratuity.

• Consolidated net turnover reached Rs 8,559m; PBT was Rs 699m and PAT Rs 551m, versus Rs 624m and Rs 442m in FY04.

• Standalone operating profit before depreciation, interest and exceptional items rose 17% to Rs 913m; sales growth was supported by price increases amid higher input costs.

Outlook and guidance

• FY06 outlook was healthy, supported by housing, infrastructure and industrial demand; management outlook was subject to unforeseen circumstances.

• Input-price uncertainty was to be managed through planning, contracting and tighter cost focus; management expected protective coatings to sustain growth.