Berger Paints India's Q1 Financial Results Show Decline in Key Areas

Berger Paints India, a leading player in the paints industry, recently declared its financial results for the quarter ending March 2024. According to the data released on May 15, 2024, the company's performance has remained flat in this quarter. This has led to a decrease in the overall score of the company from 9 to -5 in the last three months.

The financials for the quarter have shown a decline in key areas. The Profit Before Tax (PBT) has fallen by 23.7% to Rs 278.17 crore, compared to the average PBT of the previous four quarters which was Rs 364.48 crore. This indicates a negative trend in the near term for PBT. Similarly, the Profit After Tax (PAT) has also decreased by 21.5% to Rs 222.10 crore, compared to the average PAT of the previous four quarters which was Rs 282.83 crore.

The Net Sales for the quarter have also seen a decline of 9.4% to Rs 2,520.28 crore, compared to the average Net Sales of the previous four quarters which was Rs 2,780.57 crore. This indicates a negative trend in the near term for sales. The Operating Profit (PBDIT) for the quarter has been the lowest in the last five quarters at Rs 350.88 crore, showing a negative trend in the near term. The Operating Profit Margin has also decreased to 13.92%, indicating a deterioration in the company's efficiency.

Based on these financial results, MarketsMOJO has given a 'Sell' call for Berger Paints. The company will need to address these issues and work towards improving its financial performance in the upcoming quarters.