Berger Paints - Transitory Issues Impacted Q3; Cyclical Challenges Emerge For FY24: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Berger Paints India Ltd.’s Q3 FY23 earnings declined 13.4% YoY due to-lower sales of exterior paints due to prolonged monsoon and high priced inventory impacted Ebitda margin by 239 basis points. We note these issues are transitory and management is confident of double-digit revenue and volume growth in Q4 FY23 with margin recovery. However, we model key trends to unfold as-revenue growth in FY24- 25 is likely to be materially lower than FY22-23 due to negligible price hikes and lower volume growth with higher competitive pressures and revival of unorganised sector,likely inferior revenue mix due to inflationary pressures and likely higher discounting by smaller players at low end of market and with market leader planning to operate in Ebitda margin band of 17-20%, there is cap on Ebitda margin recovery for Berger Paints. Our stance of industry profit pool shrinkage due to steep competitive pressures remain intact..Click on the attachment to read the full report:.Asian Paints Q3 Result Review - Multiple Triggers For Structural Correction In P/E Multiples: ICICI Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Berger Paints - Transitory Issues Impacted Q3; Cyclical Challenges Emerge For FY24: ICICI Securities

Due to prolonged monsoon, revenues of exterior emulsion were affected.

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