Berger Paints reports a 1:5 bonus issue and a 40% increase in net profit to Rs 354 crore

Berger Paints India Ltd, which is located in Kolkata, its board proposed the issuance of bonus shares in a 1:5 ratio on Wednesday. In other words, investors will receive an extra share for every five shares they now own.

Subject to shareholder approval, the proposed bonus issue will be issued by capitalizing the 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 utilized for the bonus issue," the company said in a regulatory filing.

On or before October 7, 2023, the bonus shares would be credited to each shareholder's demat account, 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.

Along with the bonus issue, Berger Paints India also announced its June quarter results. For the first quarter ended June 30, 2023, the company recorded an increase of 40% in consolidated net profit to Rs 354.35 crore. In the months of April - June of the previous year, the company reported a net profit of Rs 253.43 crore.

Comparing the June quarter to the same period a year ago, operating revenue increased by 9.8% to Rs 3,029.5 crore from Rs 2,759.7 crore.

The manufacturer of paint and coatings also announced a high double-digit volume rise of 13.7%, driven by brisk expansion in both urban and rural markets.

Berger Paints' gross margin sharply increased to 39.8% in the reporting quarter, up 4.1% from 35.7% in Q1FY23.

Operating profit, also known as EBITDA, increased by 37.5% to Rs 556.7 crore from Rs 404.9 crore in the same period last year. Furthermore, increased 3.7% to 18.4% from 14.7% in Q1FY23.

Source: Media Reports

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