Shares of Berger Paints jumped as much as 9.4% in intraday trade on Friday after the company reported a strong set of numbers for the fourth quarter (Q4). A steep fall in crude oil prices also supported the stock price rally.
Berger Paints reported a 4.9% rise in its consolidated net profit to Rs 111.43 crore in the March quarter as against Rs 106.21 crore in the year-ago quarter. Revenue also jumped 13.38% to Rs 1,472.09 crore as against Rs 1,298.27 crore a year ago.
Total expenses for Berger Paints stood at Rs 1,304.62 crore for the March quarter, while total income was Rs 6,061.86 crore.
For full fiscal 2018-19, net profit rose 8% to Rs 497.45 crore compared with Rs 460.83 crore in 2017-18. Total income for FY19 rose 14.7% to Rs 6,061.86 crore.
The board recommended payment of a dividend of Rs 1.90 per equity share of the face value of Re 1 for 2018-19.
Meanwhile, crude oil prices fell to their lowest since March after data showed a very slight decline in US oil inventories that remain near a 22-month high. Brent crude futures fell $2.58, or 3.7%, to settle at $66.87 per barrel, while US West Texas Intermediate (WTI) crude dropped $2.22, or 3.8%, to close at $56.59 on Thursday.
JM Financial Research expects Berger Paints to improve its earnings growth trajectory henceforth as margin pressures from higher crude prices would now be largely in the base from the next quarter. However, it said that since Berger’s earnings growth trajectory and valuation remain quite similar to Asian Paints, their preference remains with the latter.
At 11:55 am, shares of Berger Paints were trading at Rs 325.55, up 8.3%, on BSE.
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