Podcast
Questions and Answers
What was the percentage of electricity generated from renewable energy sources in FY24 by Berger Paints?
What was the percentage of electricity generated from renewable energy sources in FY24 by Berger Paints?
- 19.59% (correct)
- 32.0%
- 20.9%
- 11.8%
What strategic action did Berger Paints undertake during the general election period?
What strategic action did Berger Paints undertake during the general election period?
- Reduced product prices
- Decreased production volume
- Increased export activities
- Enhanced advertisement spending (correct)
Which of the following factors contributed to a negative growth in operating profit for Berger Paints in the reviewed quarter?
Which of the following factors contributed to a negative growth in operating profit for Berger Paints in the reviewed quarter?
- Lower raw material costs
- Increased export sales
- Decreased market share
- High advertisement spending during the general election (correct)
What was the primary impact of product price reductions on Berger Becker Coatings?
What was the primary impact of product price reductions on Berger Becker Coatings?
Which segment of Berger Paints experienced a softening in sales, particularly in Kerala and West Bengal, during the period?
Which segment of Berger Paints experienced a softening in sales, particularly in Kerala and West Bengal, during the period?
Which initiative aims to help Berger Paints react faster and better to its customers?
Which initiative aims to help Berger Paints react faster and better to its customers?
What environmental achievement did Berger Paints accomplish regarding water recycling?
What environmental achievement did Berger Paints accomplish regarding water recycling?
What is the anticipated impact of a normal monsoon on the rural demand condition for Berger Paints?
What is the anticipated impact of a normal monsoon on the rural demand condition for Berger Paints?
According to the Q1 FY25 report, what was the volume sales CAGR% of Berger Paints over 4 years?
According to the Q1 FY25 report, what was the volume sales CAGR% of Berger Paints over 4 years?
What has been the impact of the implementation of Salesforce on Berger Paint's business operations?
What has been the impact of the implementation of Salesforce on Berger Paint's business operations?
In Q1 FY25, what was the primary trend observed in the decorative business of Berger Paints?
In Q1 FY25, what was the primary trend observed in the decorative business of Berger Paints?
How many tonnes of waste were recycled by Berger Paints in FY24 as part of its environmental initiatives?
How many tonnes of waste were recycled by Berger Paints in FY24 as part of its environmental initiatives?
What strategic factor is expected to improve industrial business outlook for Berger Paints after elections?
What strategic factor is expected to improve industrial business outlook for Berger Paints after elections?
What percentage of volume growth did Berger Paints register in Q1 FY25 for its standalone operations?
What percentage of volume growth did Berger Paints register in Q1 FY25 for its standalone operations?
Which factor influenced the moderation of value growth for Berger Paints in the mentioned period?
Which factor influenced the moderation of value growth for Berger Paints in the mentioned period?
What is the overarching goal of Berger Paints' last mile delivery initiative using electric vehicles?
What is the overarching goal of Berger Paints' last mile delivery initiative using electric vehicles?
What aspect of the industry poses a potential risk according to the business outlook by Berger Paints?
What aspect of the industry poses a potential risk according to the business outlook by Berger Paints?
Apart from volume growth, what other key performance indicator showed a strong gain for Berger Paints in Q1FY25?
Apart from volume growth, what other key performance indicator showed a strong gain for Berger Paints in Q1FY25?
Which factor most directly contributed to the 'unusually high profit growth' in the quarter corresponding to the one being reported?
Which factor most directly contributed to the 'unusually high profit growth' in the quarter corresponding to the one being reported?
What type of product showed greater traction in the market during the period for Berger Paints?
What type of product showed greater traction in the market during the period for Berger Paints?
How does Berger Paints aim to improve margins going forward, after accounting for inflation and increased advertising costs?
How does Berger Paints aim to improve margins going forward, after accounting for inflation and increased advertising costs?
What was the approximate percentage decrease in Profit Before Interest and Taxes (PBIT) for Berger Paints in Q1 FY25, compared to Q1 FY24?
What was the approximate percentage decrease in Profit Before Interest and Taxes (PBIT) for Berger Paints in Q1 FY25, compared to Q1 FY24?
What specific issue did Berger Paints' subsidiary, BJN Nepal, face that impacted its performance?
What specific issue did Berger Paints' subsidiary, BJN Nepal, face that impacted its performance?
What is the current target for the total number of Berger Exclusive Stores by the end of the year?
What is the current target for the total number of Berger Exclusive Stores by the end of the year?
According to Q1 FY25 results, how did the operating margin perform against the company's guidance?
According to Q1 FY25 results, how did the operating margin perform against the company's guidance?
What is the primary focus of Berger Paint's renewed strategy concerning urban markets?
What is the primary focus of Berger Paint's renewed strategy concerning urban markets?
What was the reported value sales CAGR for Berger Paints in Q1FY25 over a 3-year period?
What was the reported value sales CAGR for Berger Paints in Q1FY25 over a 3-year period?
What contributed approximately to 60% of the total income from operations for Berger Paints in Q1 FY25?
What contributed approximately to 60% of the total income from operations for Berger Paints in Q1 FY25?
Which business segment had a modest performance impacted by general elections but picked up in June?
Which business segment had a modest performance impacted by general elections but picked up in June?
Which of these figures represents the number of Colorbank machines that were installed?
Which of these figures represents the number of Colorbank machines that were installed?
Flashcards
Highest Market Share Gain
Highest Market Share Gain
Market share gain among listed players compared year-over-year and quarter-over-quarter.
Price Increase on Products
Price Increase on Products
An increase in the selling price of unique or specialized products.
Volume Growth
Volume Growth
Growth in the number of products sold, expressed as a percentage.
Operating Margin Performance
Operating Margin Performance
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Revenue Growth
Revenue Growth
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Market Share
Market Share
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Operating Margin
Operating Margin
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Volume Growth
Volume Growth
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Value Growth
Value Growth
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Sustained Growth Trend
Sustained Growth Trend
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Volume Sales CAGR
Volume Sales CAGR
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Value Sales CAGR%
Value Sales CAGR%
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Operating Profit
Operating Profit
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Double Digit Volume
Double Digit Volume
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Berger Exclusive Stores
Berger Exclusive Stores
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Salesforce
Salesforce
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Protective Coating impact
Protective Coating impact
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Industrial businesses with Vehicles
Industrial businesses with Vehicles
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Electricity from renewable energy
Electricity from renewable energy
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Last mile delivery through E vehicle
Last mile delivery through E vehicle
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Tonnes of waste recycled
Tonnes of waste recycled
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Water recycled.
Water recycled.
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Study Notes
- The document is a stock exchange filing regarding the investor presentation on the financial results of Berger Paints India Limited for the quarter ended June 30, 2024.
- The update includes information on the earnings call for Q1 FY25, scheduled for August 9, 2023.
- In Q1 FY25, Berger Paints recorded the highest market share gain among listed players on YoY & QoQ basis.
- The company experienced strong double-digit volume growth in Q1 FY25.
- A price increase was undertaken on differentiated products.
- The operating margin outperformed guidance.
- Berger Paints has consistently outperformed the industry, although revenue growth has declined from 7.7% in Q1 FY24 to -0.8% in Q1 FY25.
- Market share has grown steadily from 18.6% in FY21 to 20.9% in Q1 FY25.
- The operating margin outperformed guidance of 15-17% for the quarter.
- Standalone topline growth shows volume increased by 11.8%, but value only increased by 2.4%.
- The value growth moderation is due to a 5% product price reduction in Q3 & Q4 FY24.
- High volume/low value CC products exhibited greater traction.
- Luxury product sales softened, particularly in Kerala & West Bengal.
- Strong compounded growth maintained consistently over the past 2/3/4 years.
- For Q1FY25, Volume Sales CAGR% showed 12.2% over 2 years, 20.8% over 3 years, 32.0% over 4 years.
- For Q1FY25, Vale Sales CAGR% showed 6.2% over 2 years, 20.1% over 3 years, 35.8% over 4 years.
- Standalone operating profit for the quarter showed a negative growth.
- Factors impacting operating profit include high profit growth and margins in the corresponding quarter last year.
- Affecting factors include low-cost inventory, inflation in RM prices (Methyl Methacrylate, Butyl Acrylate), strategic advertisement spend, etc.
- Some of these factors were offset by product price increases, but only marginally improved margins.
- Financial results for standalone Q1 FY25, total income from operations grew by 2.4% with a total of ₹2806.31.
- Gross margin was at 39.2% for Q1FY25.
- The decorative business recorded double-digit volume growth.
- The construction chemical & waterproofing business performed strongly.
- The project business improved due to outperformance in the real estate sector.
- Aggressive network expansion continued with 1900+ retail touchpoints added.
- Also installed 1800+ Colorbank machines with a renewed focus on URBAN markets.
- Some of the recently launched products are "Easy Clean Silky Touch" and "Roof Kool & Seal".
- Berger Paints is expanding digital initiatives with a new website, Salesforce integration, and the Mycolour APP, and expanding the number of exclusive paint stores to 1000+.
- In Q1FY25, the Protective Coatings business had a modest performance, impacted by General Elections, with business picking up in June.
- The Automotive and General Industrial business saw muted growth due to subdued commercial vehicle segment growth.
- The Powder Coatings business line saw steady growth.
- Projects the company worked significant in the industrial business like Chenab Bridge, Vande Bharath, IICC Yashabhoomi, and Chennai Airport.
- The company has improved in net cash position from Rs 56 crs in Dec'23 to Rs 657 crs in Jun'24.
- Consolidated financial results for Q1 FY25 show a 2.0% growth in total income from operations.
- Company's overseas subsidiary, Bolix S.A, Poland and BJN Nepal continued its growth trajectory on topline.
- SBL Specialty Coatings Ltd had a muted topline growth in the quarter and suffered a profit degrowth.
- Berger Nippon Paint Automotive Coatings JV had steady business growth.
- 19.59% Electricity generated from renewable energy in FY24.
- 839 tonnes waste recycled in FY24.
- 49,149 KL water recycled in FY24, a 53% increase from FY23.
- Last mile delivery through E vehicles Initiatives and to reduce carbon footprint.
- A normal monsoon is likely to shore up rural demand.
- expect Decorative business value growth to improve in Q2, aided by product price increases.
- The industrial business outlook appear better due to increased government spending on infrastructure post-elections.
- Geopolitical factors remain a risk to inflation.
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