Q1 is seasonally one of the best for paint companies as summer is the time when houses get painted and then after monsoon, in Q3. Thanks to Covid, Q1 has been a washout and we can see that clearly in the earnings of Berger Paints.
It reported a 91% (YoY) drop in consolidated net profit at Rs.15 crore on a 46% drop in revenue from operations at Rs.931 crore.
EBITDA was down 70% at Rs.92 crore.
This is despite a 38% drop in total expenses and 68% lower tax outgo.
The stock opened with a 2.5% gap at Rs.536.20, going down further by over 4% to Rs.527.75 and currently figures among the top five losers on the BSE.