Beating peers may not be easy for Berger as it lags in rural markets

Firm could see more gains, led by a recovery in rural demand

The March 2018 quarter (Q4) results of Berger Paints (Berger), announced on Wednesday after market hours, were almost in-line with expectations.  The consolidated net sales grew 16.7 per cent year-on-year (y-o-y) to Rs 12.98 billion in Q4. The raw material costs increased and impacted gross profit margin by 85 basis points (bps). Yet, Berger improved its operating profit margin by 94 bps y-o-y, owing to control on other expenses, which declined 192 bps y-o-y as a percentage of net sales. While the operational performance was good, a Rs 73-million loss in joint venture versus a Rs 24.7-million profit in year