Berger Paints India beats Q1 profit estimates on lower taxes

JSW Dulux

09/08/2024 12:04

BENGALURU, Aug 9 (Reuters) - Berger Paints India  BRGR.NS  reported first quarter profit above estimates on
Friday, helped by lower tax expenses.
    The company reported consolidated net profit of 3.54 billion rupees ($42.2 million) for the April-June period,
largely unchanged from year ago, but above analysts' average estimate of 3.42 billion rupees as per LSEG data.
    Tax expenses fell 7.7% to 1.12 billion rupees, while discount-spurred volume growth led to revenue rising by 2%
to 30.91 billion rupees.
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3JW0W2

KEY CONTEXT
    Indian paintmakers have reported a largely mixed set of earnings, as some were able to diversify into sectors
beyond real estate and stave off tight competition, while others were pressured by weak prices.
    Kansai Nerolac  KANE.NS  and Akzo Nobel India  AKZO.NS  both reported upbeat first-quarter profits, although
Asian Paints  ASPN.NS  - the country's top paintmaker - posted weaker-than-expected earnings due to competition and
price cuts.
    Sales value was lower due to price cuts Berger Paints took to woo buyers, and stronger sales was seen in the
"high volume, low value" products in the waterproofing and construction chemicals category, CEO and Managing Director
Abhijit Roy said in a release. 
    
PEER COMPARISON 
    
                                 Valuation (next    Estimates (next 12          Analysts' sentiment          
                                    12 months)           months)                                             
                      RIC        PE     EV/EBITDA  Revenue     Profit    Mean     # of       Stock to price  Div
                                                   growth %    growth %  rating*  analysts   target**        yield
                                                                                                             (%)
 Berger Paints India   BRGR.NS   47.88      29.88     8.19       4.75    SELL            20       1.05           0.68
 Ltd                                                                                                         
 Asian Paints Ltd      ASPN.NS   50.06      34.19     7.54      -1.62    HOLD            35       0.96           1.19
 Kansai Nerolac        KANE.NS   31.22      19.96     6.49      25.65    HOLD            11       0.92           0.85
 Paints Ltd                                                                                                  
 Akzo Nobel India      AKZO.NS   32.94      21.54     8.14       5.30    BUY              2       1.10           2.28
 Ltd                                                                                                         
 
    
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading
above the PT
    
APRIL-JUNE STOCK PERFORMANCE
    -- All data from LSEG
    -- $1 = 83.9400 Indian rupees


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BRGR Q1 vs peers    https://tmsnrt.rs/3YCCs9x
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 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Varun H K)
 ((Hritam.Mukherjee@thomsonreuters.com; Twitter: @MukherjeeHritam;))