The Board of Kolkata-based multinational paint company Berger Paints India Ltd on Wednesday recommended issue of bonus shares in the ratio of 1:5. This means, for every five shares investors hold, they will get one additional share.
The proposed
bonus issue, subject to approval of the shareholders, will be issued by capitalization of Securities Premium Account. "Securities Premium Account as on audited financial statement for the year ended March 31, 2022 is Rs 120.72 crore, which is sufficient to be utilised for the bonus issue," the company said in a regulatory filing.
The bonus shares would be credited to the respective demat account of the shareholders on or before October 7, 2023, subject to completion of the rest of the formalities and approvals as and when required. "The aforesaid proposal is also subject to the approval of shareholders proposed to be taken through Postal Ballot commencing on 10th August, 2023," it said.
Berger Paints India also disclosed its June quarter results alongside the bonus issue. The company reported an increase of 40 percent in consolidated net profit to Rs 354.35 crore for the first quarter ended June 30, 2023. The company had posted a net profit of Rs 253.43 crore in the April-June period a year ago.
Revenue from operations during the June quarter rose by 9.8 percent to Rs 3,029.5 crore, as against Rs 2,759.7 crore in the last year quarter.
The paint and coating manufacturing company also reported a high double digit volume growth at 13.7 percent, led by healthy growth across urban and rural markets.
Berger Paints witnessed a sharp expansion in gross margin at 39.8 percent in the reporting quarter, up 4.1 percent as against 35.7 percent in Q1FY23.
EBITDA or operating profit rose 37.5 percent to Rs 556.7 crore as against Rs 404.9 crore in the year-ago period. Meanwhile, meanwhile, rose 3.7 percent to 18.4 percent as against 14.7 percent in Q1FY23.
“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 percent, a growth of 37.5 percent and a 2 year CAGR of 52.5 percent. We usually are in the range of 16-18 percent of operating profits and the Q1 performance has surpassed that range," said Abhijit Roy, MD and CEO at Berger Paints.
"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,” Roy said.
Shares of Berger Paints India Ltd settled at Rs 702 on the NSE, down 1.03 percent from the previous close. The stock has gained 21.60 percent on a year-to-date basis, while it rose 5.34 percent in the last one year.
First Published: Aug 9, 2023 3:41 PM IST
