Berger Paints reported better than expected earnings for the fourth quarter of fiscal 2021 with a high net profit and revenue growth. Domestic volumes grew 60 percent and on the quarter-on-quarter (QoQ) basis, margin compression has been much lower than expected.

It reported the highest growth in the industry in Q4FY21 with strong performance seen in the waterproofing and construction chemicals, said Abhijit Roy, MD and CEO, Berger Paints.

Speaking to CNBC-TV18, Roy said that the month of April was good, but the company saw the lockdown impact in May.

However, he believes that the demand in the paint industry is postponed and hasn’t gone away.

“In paint, the demand doesn’t go away, it typically gets postponed. Whether it will come back in June or later on, we don’t know, sometimes it gets postponed but I am hopeful that we will again see better growth rates in the later months once the economy reopens,” he said.

Roy expects that it would not be easy to maintain margin at current levels as the old inventory raw material advantage has gone.

For the full interview, watch the accompanying video

(Edited by : Ankit Gohel)

First Published:May 27, 2021 2:12 PM IST