Berger Paints net profit jumps in first quarter

Kolkata: Berger Paints India Ltd. posted a consolidated net profit of Rs 120.30 crore for the first quarter of the current fiscal, registering a jump of 54.6 per cent over the corresponding year-ago period, the company said on Wednesday. "Income from operations for the quarter ended in June this year was Rs 1,246.10 crore against Rs 1,126.30 crore last year, an increase of 10.6 per cent," it said at its 92nd annual general meeting. "Net profit for the quarter ended was Rs 120.30 crore against Rs 77.80 crore last year, representing an increase of 54.60 per cent," company chairman K.S. Dhingra said. The company's standalone profits stood at Rs 114.20 crore against Rs 83.30 crore in the corresponding quarter, registering an increase of 37 per cent. Dhingra said the company has approved issue of bonus shares in the proportion of two bonus shares for every existing fully paid up equity shares. Talking about the expansion plans, CEO Abhijit Roy said the company was setting up two plants in Assam. Land has been acquired for setting up an integrated paint plant at Naltoli in the Nagaon district near Tezpur. The initial annual capacity of the plant is currently proposed to be 24,000 KL per annum of water based paints and 13,200 KL per annum of solvent based paints together with corresponding resin manufacturing facility. "The production is scheduled to commence by January 2017 and our entire range of products including water-based solvents and dry products will be produced," said Roy. In addition, the British Paints Division of the Company is setting up a distemper and putty manufacturing facility in Nalbari near Guwahati with a capacity of 1,200 tonnes and 6,000 tonnes per annum, respectively.