Berger Paints just put out the dullest quarter in a long time⁠— and that didn't include the worst of the lockdown

• Berger Paints reported around 6.5% fall in its consolidated net profit to ₹103.2 crore for the fourth quarter.
• The total revenue was down 8% YoY to ₹1,354.8 crore during the period.
• “The operations of the Group were impacted in the month of March 2020 due to temporary shutdown of all manufacturing units,” the company said.

India’s second largest multinational paint company Berger Paints reported around 6.5% fall in its consolidated net profit to ₹103.2 crore for the fourth quarter ended March 31. The company shares were up over a percent ahead of the earnings.

The total revenue was down 8% YoY to ₹1,354.8 crore during the period. The company’s board has recommended a dividend of ₹0.30 per equity share.

“The operations of the Group were impacted in the month of March 2020 due to temporary shutdown of all manufacturing units and depots on account of the lockdown announced by the Government of India because of the COVID-19 pandemic,” the company said in a statement.

However, it further added that the company does not expect a material impact of COVID-19 on the Group's liquidity and future performance.

This time along with the coronavirus crisis, the prolonged monsoons and floods in different states impacted decorative paints adding to woes of the paint maker. Yet, the stocks have ridden a wave of hope over in the last one month.

With the fear of the virus and adherence to social distancing norms, Indian households are reluctant to allow painters in the house immediately.

The green-zone volumes picked up in the first week after lockdown, but it shrank once pending work was completed, according to a dealer volume check by B&K Securities.

According to Statista, Berger Paints owns a little over 12% of the paint market share in India.

The plan B for paint makers

With most key events such as marriages and functions on hold, the demand may remain dull in future for paints, according to analysts. Berger Paints earlier last month decided that it is going to produce sanitiser commercially and entering home and personal hygiene space across the country. The move came after other paint giants like Asian paints and JSW Paints became the first two paint majors to invest in the idea.

India’s sanitiser market is expected to touch ₹500-crore mark this year— all thanks to the coronavirus woes. In the times of new normal, paint companies are expecting a good demand for the health and hygiene ranges. Berger paints also introduced its antimicrobial powder coatings for usage in the medical industry to restrict the spread of infection as much as possible.

SEE ALSO: Asian Paints and Berger’s earnings will show if people will risk renovators inside their homes⁠— until then its sanitisers to the rescue

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