Berger Paints Announces Bonus issue In 1:5 Ratio, PAT Jumps 40% YoY To Rs 355 Crore

Berger Paints India on Wednesday, Aug 09, announced the April-June quarter results. For the quarter that ended in June 2023, the company's consolidated net profit jumped nearly 40% year over year (YoY), rising from Rs 254 crore to Rs 355 crore in the same quarter the previous year. In comparison to the same period the previous year, operating revenue increased 9.2% YoY to Rs 3,029 crore from Rs 2,773 crore.

The company's Board of Directors has approved the issue of one bonus equity share in a ratio of 1:5 i.e. 1 bonus equity share of face value of Re 1 each against 5 equity shares of the face value of Re 1 each.
The Bonus shares, subject to the approval of the Shareholders will be issued by the capitalization of the Securities Premium Account.

"The Board of Directors at its meeting held on 9th August, 2023, considered and approved issue of 1 bonus equity share of face value of Re 1/- each against 5 equity shares of the face value of Re 1/- each. This is subject to shareholder's approval" the company said in a filing.

Shares of Berger paints on Wednesday closed 1.65% down at Rs 698.75 per share on BSE with highs and lows of Rs 721.45 and Rs 686.70, respectively.

"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 % also increased substantially to 18.8%, a growth of 37.5% and a 2 year CAGR of 52.5%. We usually are in the range of 16-18% of operating profits and the Q1 performance has surpassed that range. Decorative registered volume growth in the mid teens and double digit value growth. Auto GI and Protective Division have done 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." said Mr Abhijit Roy, MD and CEO, Berger Paints India Limited.