Berger Paints Q1 net up 14 per cent at Rs 62.5 crore

KOLKATA: Berger Paints has reported a 14 per cent growth in net profit at Rs 62.55 crore in the first quarter (Q1) of the financial year 2014-15 against Rs 55.16 crore net clocked in the corresponding quarter previous year. Total income from operations also rose by 15 per cent to Rs 940.56 (Rs 818.35 crore).

The revenue outlook of the company during this financial year appears better as the raw material cost and rupee value against dollar stabilised.

Earlier after the company’s annual general meeting held in Kolkata on Friday, Berger Paints managing director & CEO Abhijit Roy, said that the first phase of the company’s water-based paint plant at Hindupur in Andhra Pradesh is expected to be commissioned next month after getting delayed for some months for certain clearance.

The powder coating unit at Jejuri in Maharashtra is also likely to be commissioned in September, he added. While Hindupur (phase I) capacity is 80,000 tonnes a year, Jejuri would have a capacity to produce 900 tonnes a year. Incidentally, the company had invested Rs 140 crore at Hindupur and Rs 40 crore at the Jejuri plant.

Elaborating further, Mr Roy said that the company is looking at various geographies across the country to buy out units or set-up greenfield plants, particularly in south east Asian countries.

Berger Paints chairman K S Dhingra told reporters that the firm is looking at both organic and inorganic growth for expansion. He said the buy-out of Sherwin Williams decorative paints business in Mumbai was a good fit in the company's portfolio. “The loss-making unit will be turned around and is expected to fetch a revenue of Rs 100 crore in the current fiscal,” he added.