Berger Paints India (BERGEPAINT) Q4 06/07 earnings summary

Executive summary

• FY06/07 standalone net sales Rs 11,651 million, up 18.77%; profit after tax Rs 831 million, up 18.06% YoY.

• Consolidated sales reached Rs 13,836 million, up 18.73%; consolidated net profit was Rs 877 million, up 17.88%.

• Growth reflected strong demand across decorative, automotive and industrial markets, supported by product launches and capacity expansion.

Financial highlights

• Standalone gross turnover was Rs 13,220 million; net turnover Rs 11,651 million versus Rs 9,810 million in FY05/06.

• Standalone PBDIT before exceptional item was Rs 1,284 million, up 12.04%; PBT Rs 1,022 million and PAT Rs 831 million.

• Consolidated PBT before exceptional item was Rs 1,071 million versus Rs 967 million; PAT was Rs 877 million versus Rs 744 million.

• Materials consumed rose to Rs 7,608 million from Rs 6,292 million; expenses increased to Rs 2,888 million from Rs 2,506 million.

• Exceptional VRS expense was Rs 0.55 million versus Rs 3.16 million in FY05/06.

Outlook and guidance

• Sales were expected to grow in line with industry growth; management anticipated continued healthy growth barring unforeseen circumstances.

• Outlook remained positive on economic growth, housing and industrial expansion; focus included premium and mass-market products and continued capacity additions.

• FY07/08 offerings and development priorities included premium interior and exterior coatings, low-VOC and special-effect paints, protective coatings and automotive products.