- Berger’s sales rose by 18.7% to Rs 425 crore in the December quarter, which is a strong one for most paint companies due to the festival season. Material costs grew by only 16% and its operating profit margin improved from 7.9% to 10.1%. Key raw materials used by paint companies are pigments like titanium dioxide, resins and solvents.
- The company’s profit before tax rose by 86% to Rs 28 crore, much higher than the 52% growth in operating profits, due to higher other income and lower interest costs (partly offset by higher depreciation).
- Other income doubled to Rs 5 crore, interest costs fell by 82% to Rs 90 lakh while depreciation increased by 31% to Rs 6.75 crore.
- The company raised Rs 135 crore during the quarter through an equity issue to fund a new paint factory being set up in Tamil Nadu.