Berger Paints India (BERGEPAINT) Q4 98/99 earnings summary

Executive summary

• FY99 sales reached Rs 42,609 lakh, up 15%; profit after tax was Rs 2,363 lakh, despite political turmoil and post-nuclear-test sanctions.

• Rajdoot’s amalgamation took effect from 1 October 1998; FY99 results include its October–March operations, making comparisons with FY98 non-comparable.

Financial highlights

• Revenue was Rs 42,608.70 lakh versus Rs 34,859.52 lakh in FY98; profit before tax was Rs 2,456.30 lakh versus Rs 2,440.52 lakh.

• Net income was Rs 2,362.85 lakh versus Rs 1,823.96 lakh; tax provision was Rs 93.45 lakh versus Rs 616.56 lakh.

• Other income increased to Rs 525.31 lakh from Rs 220.03 lakh; it included Rs 52.50 lakh in subsidiary dividends and Rs 412.55 lakh in miscellaneous income.

• Operating cash flow was Rs 242.92 lakh; cash and cash equivalents closed at Rs 2,582.98 lakh.

Outlook and guidance

• Year-to-date performance was encouraging; directors expected improved performance in FY00, barring unforeseen circumstances.

• Five strategically located factories, including new sites in Sikandrabad and Goa, were expected to strengthen customer service and capacity; Goa and Pondicherry had tax-holiday benefits.

• Base-tinting offerings were planned to expand from seven products by two more products.