Berger Paints is set to announce its July-September earnings tomorrow (November 5) after market hours. Zee Business research expects the paints major to post decent quarterly performance on the back of likely improved volume growth.

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For the review quarter, the company's consolidated net profit or PAT is seen to increase by 4.8 per cent to Rs 306 crore. The same was at Rs 292 crore in the corresponding period of the previous year. Revenue from operations during the September quarter is estimated at Rs 2,845 crore, up 2.8 per cent, from Rs 2,767 crore reported in Q2FY24.

On the operational front, Berger Paints' EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortization is expected to increase only marginally by 0.7 per cent year-on-year (YoY) to Rs 477 crore. EBITDA during the same period of the previous year was at Rs 474 crore. Meanwhile, the EBITDA margin is seen declining by 0.3 per cent or 30 basis points to 16.8 per cent, from 17.1 per cent in September quarter of FY24 on the back of increased A&P expenditure.

Furthermore, analysts peg 'volume' and 'value' growth at the coatings major during the review period at 9 per cent and 2 per cent, respectively.

The company since June has taken three price hikes and expected value growth of around 5 per cent in the second quarter, while maintaining a volume growth target of at least 10 per cent.

After its 100th AGM, Berger informed that its next milestone is to double its turnover to Rs 20,000 crore by 2029, up from Rs 10,000 crore in FY2024.

In the industrial coatings business, analysts peg 6 per cent growth in revenue, while gross margins are seen to remain steady YoY.

Berger Paints share price performance 

Ahead of its results tomorrow, shares of the company traded weak by over 1 per cent at Rs 526.05. In the past one year, shares of the Kolkata-based company gave negative return of over 5 per cent.