Financial Daily from THE HINDU group of publications
Wednesday, Jun 07, 2006
Financial Daily from THE HINDU group of publications Wednesday, Jun 07, 2006 |
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Corporate
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Bonus Announcements Corporate Results - Paints Berger Paints proposes 3:5 bonus issue Our Bureau
Improved performance Total dividend for the year touches 100 pc The proposed bonus issue to push up paid-up capital The capacity of the existing plants to be expanded The company is open to acquisitions
Kolkata , June 6 Riding high on 19.4 per cent growth in consolidated net sales at Rs 1,030.50 crore in 2005-06 (Rs 863 crore ) and 34.5 per cent in net profit at Rs 74 crore (Rs 55 crore), the Board of Directors of Berger Paints India Ltd at a meeting here on Tuesday recommended bonus shares in ratio of 3:5, i.e. three new shares will be issued for every five held. The company also declared a final dividend of 50 per cent, which together with an interim of 50 per cent, takes the total to 100 per cent for 2005-06.
paid-up capital
Mr K.S. Dhingra, Chairman of the company, told newspersons at the end of the board meeting that the proposed bonus issue would push up the company's paid-up capital from the present Rs 39.86 crore to Rs 66.4 crore. "We have a reserve of Rs 188 crore and therefore we're in a comfortable position," Mr Dhingra said. Mr Subir Bose, Managing Director, stated that for the first time Berger became the second largest paint company in the country in terms of consolidated net sales. "We are ahead of Goodlass Nerolac by an estimated Rs 10 crore," he said, pointing out that Berger was number two in terms of volume for quite some time. Also, for the first time, the company's consolidated net sales exceeded Rs 1,000-crore mark in 2005-06.
Growth
Mr Bose attributed the improved performance of the company to a combination of factors such as re-launching of the brand Lewis Berger and bold initiatives like introduction of innovative products and innovative packaging. The home painting service, presently covering 15 cities, too made considerable strides during the year, he said. Both Mr Dhingra and Mr Bose sounded bullish about the company's prospects in the current fiscal. "The fundamentals of the economy are strong and the growth of paint industry is related to the growth of the GDP," they observed. Berger hoped to post an estimated 15 per cent growth in volume and 19 to 20 per cent in value.
Capacity hike
While there was no immediate plan to launch any new factory to meet the projected growth in demand, the capacity of the existing plants would be expanded to the extent to be required to meet the growing demand. The Rewari plant, now under construction, would be ready for operation in 2007-08 and it would cater exclusively to the automotive sector. In the current year, an estimated Rs 55 crore was proposed to be spent on capacity expansion, which also included Rs 40 crore investment in the Rewari plant.
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