Berger Paints international biz may turn black in Q2 : Poll

Berger Paints, the second largest player in the decorative paints market with a 17 percent market share, will declare its second quarter (July-September) results today. According to a CNBC-TV18 poll, analysts expect share of decorative paints and within that premium emulsions to increase in overall revenues. However, industrial paints demand will remain muted in the quarter, they feel.

During September quarter, the company is expected to benefit from the price growth of 3 percent Y-o-Y.

Volume growth is likely to be at around 9-10 percent year-on-year, driven partly by filling in of the dealer channel due to price increases and sales push due to Diwali being sooner by 2 weeks in FY14. Volume growth was around 3 percent in Q2FY13.

Analysts feel tax rate could be higher at 30 percent in second quarter as against 26 percent in a year ago period.

They expect international operations to report 10 percent Y-o-Y growth and profits for international business to turn black in the quarter gone by.

According to a poll, consolidated profit after tax is expected to rise 1.6 percent on yearly basis to Rs 54.3 crore and total income to increase 12.6 percent Y-o-Y to Rs 914 crore in three-month period ended September 2013.

Earnings before interest, tax, depreciation and amortisation may grow 8.5 percent year-on-year to Rs 97.6 crore, but operating profit margin may decline 40 basis points Y-o-Y to 10.7 percent during second quarter of current financial year 2013-14.