Berger Paints on Wednesday said its board has approved a proposal of bonus issue of one bonus share of face value of Re 1 each against five shares of the face value of Re 1 each, which would be subject to shareholder's approval. The announcement came along with the paints maker's June quarter results. Berger Paints said its net profit for quarter climbed 39.9 per cent YoY to Rs 354.91 crore compared with Rs 253.71 crore in the corresponding quarter last year. The bottom line growth was led by favourable raw material costs and operational efficiencies.
Revenue from operations grew 9.8 per cent YoY to Rs 3,029.51 crore from Rs 2,759.70 crore in the same quarter last year. Berger Paints said high double-digit volume growth was led by healthy growth across urban and rural markets.
Ebitda (excluding other income) for the quarter ended June 30 stood at Rs. 556.75 crore against Rs. 404.84 crore in the corresponding quarter of the last year, up 37.5 per cent.
“Berger Paints continued to deliver on its promise of excellence and outperformed the market. The decorative business saw double digit growth both on value and volume fronts on high bases. Our operating profit-to sales percentage also increased substantially to 18.8 per cent, a growth of 37.5 per cent and a 2 year CAGR of 52.5 per cent. We usually are in the range of 16-18 per cent of operating profits and the Q1 performance has surpassed that range, said Abhijit Roy, MD and CEO at Berger Paints.
Decorative registered volume growth in the mid teens and double digit value growth, he said adding that Auto GI and Protective division did well even on high bases.
"Powder coatings underperformed in Q1 but is expected to do better in Q2. Nepal operations underperformed due to country specific issues and will rebound in the coming quarter. We continue to focus on network expansion and invest in our brands. All our differentiated products like Anti Dust, Easy Clean and Longlife continue to grow handsomely. With normal monsoons ahead and an extended festive season, we are gearing up for exciting times ahead.” he said.
Innovative products like Anti Dustt, Easy Clean, Longlife and PU enamel performed exceedingly well, Berger Paints said. Waterproofing and CC segment continues to generate robust growth. Powder coatings division saw a muted growth but has started rebounding from July onwards, the paints maker said.
In international business, Nepal business suffered while Bolix Poland and Russia operations did well, it added.
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