Margin returns to be normal in Q3 but will improve in Q4, says Berger Paints

Berger Paints is expecting the margin returns to be normal in quarter 3, said Abhijit Roy, managing director and CEO of the company, adding that it will improve in quarter 4.

The company posted a good set of numbers in quarter 3. Revenues were better than what the street was expecting. The fall in margins was expected given the earnings reported by the peer companies.

“We have taken price increase on October 1, which is about 2.2 percent and then another one about 1.5-1.6 percent is what we have announced for December 1. So I think the margins will be back to normal as far as the decorative business is concerned by Q3 end and Q4 will be relatively much better,” said Roy, sharing his views and outlook.

“Volume growth was around 15 percent which is fairly reasonable given the context. With the goods and services tax (GST) drop happening it is a reasonably good volume growth," he said.

“October volumes were fairly good, much better than 15 percent,” Roy added.