Key highlights from Berger Paints India Ltd (BERGEPAINT) Q4 FY22 Earnings Concall
Q&A Highlights:
- Shirish Pardeshi from Centrum Capital asked about the volume growth for 4Q22 and FY22. Srijit Dasgupta CFO replied that 4Q22 was flat in terms of volume due to the one-off project business in 4Q. For the year, volume was a little below 20%.
- Shirish Pardeshi from Centrum Capital enquired about the inflation the company is seeing today versus 4Q. Srijit Dasgupta CFO answered that some of the raw materials have cooled off a little bit like oils, rutile etc. but the solvent prices continue to increase. So if things remain as they are, there is perhaps a case for a marginal price increase going forward.
- Shirish Pardeshi from Centrum Capital asked that if the pricing is fluid that will also somewhat impact the trade inventory. Srijit Dasgupta CFO said that the company has seen the worst of it on inventory effect at the dealers end playing out in 4Q. Looking at April and May trends, BERGEPAINT is quite optimistic.
- Avi Mehta from Macquarie asked about demand environment and if any impact is seen on volume growth after the sharp price increases. Srijit Dasgupta CFO replied that April and May were good even with small price increases. The company is optimistic and expects the demand to continue to unfold.
- Avi Mehta from Macquarie asked that if the selective price hike in powder coating business is due to higher competitive intensity. Srijit Dasgupta CFO answered that it’s just that the company has not sold at those low margins as a policy and therefore the topline suffered a little bit.