Berger Paints (I) Limited — PPTs, 14-05-2025: Investor Presentation

1. Financial Highlights:

Volume grew 7.4% and revenue rose 4.4% in Q4 FY25, supported by market share above 20%. Operating profit jumped 19.8%, with margin at 16.6%, a 12-quarter high, driven by better product mix, price hikes, and favorable raw material costs. Full-year standalone volume increased 7.6%, with value sales and PBDIT growing modestly by 1.7% and 0.1%. Gross margins stayed strong despite price corrections last year. Consolidated results showed 7.3% volume growth, 21.9% operating profit increase, and net cash rising to Rs 688.6 Cr.

2. Strategic Initiatives & Growth Drivers:

Decorative paints posted high single-digit volume growth thanks to richer product mix and pricing power. Retail footprint expanded past 1,000 stores with 550+ additions, supported by 8,000+ tinting machines installed. Construction chemicals and waterproofing products—especially roof coatings—maintained strong momentum. Innovations like the Kool Range address thermal insulation needs. Protective coatings gained from infrastructure spending, while automotive coatings grew on two-wheeler demand.

3. Business Developments:

Subsidiaries Bolix, BJN Nepal, and BNPA delivered robust revenue and profitability growth through new client wins and recovery momentum. Berger Becker saw solid revenue gains despite a soft base. STP expanded margins despite flat revenues, improving operating performance.

4. Market Position & Competitive Advantage:

Berger Paints solidified leadership with market share above 20%, benefiting from scale, diverse product offerings across decorative, protective, and industrial segments, and strong cost control. This underpins margin resilience amid raw material and currency volatility.

5. Investor Implications:

The company shows promising growth potential through volume-driven revenue, margin expansion, and a strengthened net cash position. Continued retail expansions and product innovation support long-term market share gains. Execution risks include pricing pressures and geopolitical factors, but the outlook remains positive overall.