BERGER PAINTS 2023-24 Annual Report Analysis

Tue, 23 Jul

BERGER PAINTS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

BERGER PAINTS Income Statement Analysis

• Operating income during the year rose 6.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.0% in FY24 as against 13.9% in FY23.
• Depreciation charges increased by 25.3% and finance costs decreased by 21.1% YoY, respectively.
• Other income grew by 23.5% YoY.
• Net profit for the year grew by 36.0% YoY.
• Net profit margins during the year grew from 8.1% in FY23 to 10.4% in FY24.

BERGER PAINTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	105,678	111,989	6.0%
Other income	Rs m	516	637	23.5%
Total Revenues	Rs m	106,194	112,626	6.1%
Gross profit	Rs m	14,740	19,023	29.1%
Depreciation	Rs m	2,640	3,309	25.3%
Interest	Rs m	992	783	-21.1%
Profit before tax	Rs m	11,623	15,569	33.9%
Tax	Rs m	3,019	3,871	28.2%
Profit after tax	Rs m	8,604	11,698	36.0%
Gross profit margin	%	13.9	17.0
Effective tax rate	%	26.0	24.9
Net profit margin	%	8.1	10.4

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BERGER PAINTS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 33 billion as compared to Rs 37 billion in FY23, thereby witnessing an decrease of -10.8%.
• Long-term debt down at Rs 60 million as compared to Rs 78 million during FY23, a fall of 22.8%.
• Current assets rose 8% and stood at Rs 52 billion, while fixed assets rose 7% and stood at Rs 58 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 110 billion as against Rs 103 billion during FY23, thereby witnessing a growth of 7%.

BERGER PAINTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	44,895	53,739	19.7
Current Liabilities	Rs m	36,716	32,740	-10.8
Long-term Debt	Rs m	78	60	-22.8
Total Liabilities	Rs m	102,721	110,068	7.2
Current assets	Rs m	48,615	52,295	7.6
Fixed Assets	Rs m	54,106	57,773	6.8
Total Assets	Rs m	102,721	110,068	7.2

BERGER PAINTS Cash Flow Statement Analysis

• BERGER PAINTS's cash flow from operating activities (CFO) during FY24 stood at Rs 16 billion, an improvement of 63.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -11 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs 129 million net cash flows seen during FY23.

BERGER PAINTS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	9,756	15,911	63.1%
Cash Flow from Investing Activities	Rs m	-6,003	-3,981	-
Cash Flow from Financing Activities	Rs m	-3,629	-10,689	-
Net Cash Flow	Rs m	129	1,241	864.2%

Current Valuations for BERGER PAINTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.0, an improvement from the EPS of Rs 8.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 525.2, stands at 54.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.4 times, while the price to sales ratio stands at 5.5 times.
• The company's price to cash flow (P/CF) ratio stood at 44.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	108.8	96.1
TTM Earnings per share	Rs	8.9	10.0
Diluted earnings per share	Rs	7.4	10.0
Price to Cash Flow	x	50.2	44.8
TTM P/E ratio	x	64.6	54.2
Price / Book Value ratio	x	13.7	12.5
Market Cap	Rs m	616,683	671,607
Dividends per share (Unadj.)	Rs	3.2	3.5

Ratio Analysis for BERGER PAINTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY24, from 1.3x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 20.9x during FY24, from 12.7x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 21.8% during FY24, from 19.2% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 30.4% during FY24, from 28.1% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 11.3% during FY24, from 9.3% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.3	1.6
Debtors’ Days	Days	4	4
Interest coverage	x	12.7	20.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.3	11.3
Return on equity	%	19.2	21.8
Return on capital employed	%	28.1	30.4

To see how BERGER PAINTS has performed over the last 5 years, please visit here.

BERGER PAINTS Share Price Performance

Over the last one year, BERGER PAINTS share price has moved down from Rs 576.1 to Rs 525.2, registering a loss of Rs 50.9 or around 8.8%.

Overall, the S&P BSE SENSEX is up 18.9% over the year.

(To know more, check out historical annual results for BERGER PAINTS and quarterly results for BERGER PAINTS)