Roy explained that sales performance is a far more critical metric than capacity in the paint industry. “We are way ahead of Birla Opus on sales parameters,” he said, highlighting that adding too much capacity early on can hurt returns on capital. Berger Paints expands capacity only when sales demand justifies it, said Roy.
Acknowledging rising competition in the sector, Roy expressed confidence in Berger Paints’ ability to adapt. “Competition keeps us on our toes and helps us become more efficient,” he said, suggesting that the challenge positively impacts the company’s operations.
Berger Paints reported its Q2FY25 financials with revenue of ₹2,774.61 crore, gross margins at 41.7%, earnings before interest, taxes, depreciation, and amortisation (EBITDA) of ₹434.18 crore with margins at 15.6%, and a profit after tax (PAT) of ₹269.9 crore.
Also Read: Berger Paints Q2 net profit dips 8%, revenue flat as long monsoon dampens volume growth
The market capitalisation currently stands at ₹56,174 crore, with its shares witnessing a 17% decline over the past year.
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(Edited by : Unnikrishnan)
First Published: Dec 6, 2024 3:20 PM IST