Kolkata, Jul 30: Berger Paints India Ltd today announced a 25 per cent dividend for FY 2007-08 with propelling net turnover to Rs 1340 crore, a milestone to become the second biggest paint company in India and profit before tax grew by 16 per cent at Rs 119 crore.
Chairman Kuldip Singh Dhingra said the company's consolidated sales were Rs 1585.7 crore ending March 31, 2008, as against Rs 1322.2 crore the year before showing a 14.6 per cent growth. The consolidated net profit at Rs 93 crore was higher than those of previous year (Rs 87.7 crore) by 6.04 per cent. During the last financal, the company achieved sales of Rs 1521.7 crore as against Rs 1322.2 crore in previous year registering a growth of 15.09 per cent.
The profit before depreciation, interest and exceptional item, was Rs 149 crore as against Rs 128.4 crore in previous year, recording an improvment of 16.04 per cent.
The profit before tax was at Rs 118.8 crore and profit after tax was at Rs 92.1 crore during the year showed an improvement of 16.24 per cent and 10.96 per cent respectively.
The company, in spite of lower GDP growth and slowdown in the automotive sector, was able to deliver steady top line growth. But margin of profit lowered due to inflationary pressure in raw materials from the 4th quarter, Mr Dhingra said.
The compnay continued to focus on improving product mix, cutting costs and improving service level to customers to retain its competitive edge.
The company has signed an agreement for acquisition of Bolix S.A.
(Bolix), a leading provider of external insulation finishing systems (EIFS) in Poland, from Advent International, a global private equity group.
The agreement was signed on April 28 and the acquisition will be made through Lusako Trading Ltd, currently the company's subsidiary in Cyprus. The transaction will be made at an estimated value of USD 34.8 million, subject to usual net debt and working captial adjustments.