Berger Paints India (BERGEPAINT) Q4 99/00 earnings summary

Executive summary

• FY00 sales reached Rs 505.01 crore; profit after tax was Rs 23.70 crore, while operating profit as a share of net sales eased to 9.76% from 10.15%.

• Results are not directly comparable with FY99 because Rajdoot Division contributed a full year in FY00 versus six months previously.

Financial highlights

• Sales were Rs 505.01 crore and net sales, after excise, were Rs 438.00 crore; stated net-sales growth was 19.78%.

• Operating profit before depreciation, interest and exceptional item was Rs 42.77 crore; PBT before the exceptional item was Rs 28.47 crore.

• PBT was Rs 27.03 crore after Rs 1.44 crore of VRS expenditure; PAT was Rs 23.70 crore.

• Higher raw-material costs, without a corresponding selling-price increase, affected profit margins.

• Operating cash flow was Rs 23.10 crore; cash and bank balances closed at Rs 28.14 crore.

Outlook and guidance

• Year-to-date performance was described as encouraging; directors expected all-round improvement in FY01, barring unforeseen circumstances.

• Priorities included cost control, business re-engineering, supply-chain management, manpower productivity and upgrading the IT backbone.

• Management targeted higher operating profit relative to sales and was exploring acquisitions in other SAARC markets and elsewhere.