Berger Paints has announced a bonus issue in a 1:5 ratio and shared its Q1 financial results. Here are the key points from their announcement:
- Bonus Issue: Berger Paints' board has approved a bonus issue of one bonus share of face value Re 1 each for every five shares of face value Re 1 each. This proposal is subject to approval by the shareholders.
- Q1 Financial Performance:
- Net Profit: The Company’s net profit for the quarter ended June increased by 39.9% year-on-year (YoY) to Rs 354.91 crore, compared to Rs 253.71 crore in the same quarter last year. The growth was attributed to favourable raw material costs and operational efficiencies.
- Revenue: Revenue from operations grew by 9.8% YoY to Rs 3,029.51 crore from Rs 2,759.70 crore in the corresponding quarter last year.
- Volume Growth: High double-digit volume growth was observed across both urban and rural markets, contributing to the revenue growth.
- Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): EBITDA (excluding other income) for the quarter stood at Rs 556.75 crore, showing a significant increase of 37.5% compared to Rs 404.84 crore in the same quarter of the previous year.
- Operational Performance:
- Berger Paints' decorative business saw double-digit growth in both volume and value. The decorative segment registered volume growth in the mid-teens and double-digit value growth.
- The Auto GI and Protective division also performed well, even with high bases.
- Innovative products such as Anti Dust, Easy Clean, Long-life, and PU enamel performed exceedingly well.
- Waterproofing and CC (Construction Chemicals) segment continued to generate robust growth.
- The powder coatings division witnessed muted growth in Q1 but started rebounding from July onwards.
- International operations saw mixed performance. While Bolix Poland and Russia operations did well, Nepal business suffered due to country-specific issues.
Berger Paints' MD and CEO, Abhijit Roy, expressed satisfaction with the Q1 performance and highlighted the company's focus on network expansion and investing in their brands. The company is optimistic about the coming months, citing normal monsoons and an extended festive season as positive factors for growth.