Berger Paints gains 8% on robust Q1 results, expansion plans

NEW DELHI: Berger Paints Ltd surged over 8 per cent in early morning trade on Friday and is trading very close to its 52-week high of Rs 153.30 after the company posted a rise of 19 per cent at Rs 44 crore in its consolidated net profit for the first quarter ended June 2012.

The net sales during the quarter stood at Rs 803 crore, up from Rs 693 crore posted in the same period last year.

At 10:50 a.m., Berger Paints was trading 8.6 per cent higher at Rs 148. It has hit a low of Rs 135.95 and a high of Rs 149.20 today.

In a separate report, Kolkata-based Berger Paints said it will double its capacity to 42,000 tonnes per month by the end of 2013 at an investment of Rs.140 crore.

IANS report quoting, Abhijit Roy, managing director and chief executive officer said 5000 tonnes of capacity each will be added to its plants in West Bengal (Hooghly) and Goa (North Goa) at a cost of Rs.30 crore for each plant. The capacity expansion at the Hindupur plant will cost Rs.80 crore.

The company is also looking to expand its distribution channel from the existing 12,000 dealers to 16,000 in the next four years. Roy said the company was aiming to be among the top 25 paint companies in the world.