homebusiness Newscompanies NewsBerger Paints explains why Q1 volume growth was lower than Asian Paints
Berger Paints explains why Q1 volume growth was lower than Asian Paints
Berger Paints reported a strong first quarter performance the first quarter but its volume growth was lower than Asian Paints. In an interview with CNBC-TV18, Abhijit Roy, MD and CEO at Berger Paints explained the reasons behind this.
Berger Paints reported a strong first quarter performance the first quarter but its volume growth was lower than Asian Paints. In an interview with CNBC-TV18, Abhijit Roy, MD and CEO at Berger Paints explained the reasons behind this.
“In the profit growth, we were ahead of them actually because we deliberately took the strategy of staying away from pricing, which had a negative effect on the overall volume and value growth. That was one of the reasons,” he said.
“The second reason was we had a base effect - last year we had a project, which was a very big project in Andhra Pradesh. This was the school project and that base was very high in this particular quarter. So, that had an impact on the overall sales growth, otherwise, we would have probably grown at about 61 percent had that base not been there,” he added.
In terms of competition, Roy said, competition has always been there and recently lots of international players have come in too.
“Competition only strengthens our resolve. We are not overly worried but any competition also helps you to become more energized, to become careful in your scheme of things, that is a good thing,” he mentioned.
The decline in brent crude prices has helped raw material prices to cool down. While discussing the demand environment as the raw material prices come off the peak, he said, “Next quarter will be far better. In terms of gross margins there could be an improvement of about 2-2.5 percent, he said.
The stock is up 5.06 percent in the last week and 22.55 percent in the past month.
For the full interview, watch the accompanying video
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats
May 15, 2024 8:09 PM
Wine shops and bars to remain shut for 4 days in Mumbai in 4 weeks, check details
May 15, 2024 7:52 PM
INDIA bloc will win majority seats in Bihar, says Tejashwi Yadav
May 15, 2024 4:20 PM