Berger Paints
Berger Paints India posted a good set of numbers for Q4FY16 and FY16 and sweetened it further with a bonus of 2 shares for every 5 share held. The market though was not very happy with the bonus ratio. The company also declared a total dividend of 165% or Rs.1.65/share (Re.1 FV).
For Q4FY16, the company’s consolidated total sales rose 8.5% (YoY) at Rs.1130 crore and net profit came in at Rs.93 crore, up by a healthy 60%. This was mainly on account of the sharp reduction in interest outgo – down 64% which in turn was due to a 88% drop in its total borrowings as at 31st March 2016 at Rs.324 crore. Raw material cost has shown an increase of 10% which reflect the increase in price of crude oil during the quarter. Employee cost rose 18%. EBITDA for the quarter was up 32% at Rs.159 crore and margins improved from 11.6% to 14.1%.
The company ended the fiscal with a 7% rise in consolidated net sales at Rs.4620 crore and net profit was up 40% at Rs.370 crore. Equity stands at Rs.69.33 crore and EPS for the year was at Rs.5. Post the bonus issue, equity will go up to Rs.83.2 crore.