Berger Paints' third quarter consolidated profit is seen rising 25.6 percent year-on-year to Rs 103 crore and revenue may increase 11 percent to Rs 1,240 crore, according to analysts polled by CNBC-TV18.
Lower depreciation and interest burden lead earnings growth may be ahead of EBITDA growth.
Operating profit (earnings before interest, tax, depreciation and amortisation) in Q3 is likely to jump 20.9 percent to Rs 180 crore and margin may expand 120 basis points to 14.5 percent compared to year-ago period.
Delayed festive season and wedding season may aid volume and revenue growth. Analysts expect 11-16 percent volume growth in domestic markets, driven by advertised products and traction in low/economy segment.
They expect positive response from company's express painting service and continued increase in distribution efforts. According to poll, Berger has gained market share from Kansai and Akzo.
There could be significant gross margin expansion. Benign rutile and falling crude may aid gross margin by 100-150 basis points. Soft input costs may be partially offset by recent depreciation in rupee against US dollar.
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