The delivery volumes for Berger Paints increased 725 per cent in the fortnight. This follows the May 2008 issue of 2 crore equity warrants to promoter group Jenson and Nicholson (Asia), UK, at Rs 49.50 a share. Total proceeds from the issue amounted to Rs 99 crore and the company plans to use the funds to pay for the acquisition of Bolix S.A. Poland, to enhance the capacity of its paint plant and the installation of a resin manufacturing plant in Goa, and the expansion and modernisation of plants in Gujarat and West Bengal. Berger posted strong revenue growth of 24.6 per cent to Rs 378 crore for the quarter to June 2008, as against Rs 303 crore in the previous corresponding quarter. Rising input costs led to Ebitda staying flat at Rs 31.7 crore, as against Rs 31.5 crore in the previous corresponding period. Ebitda margins were also under pressure, falling to 8.4 per cent ‘gainst 10.4 per cent in the previous corresponding period. The softening oil prices should provide some relief for the company on the margins front in the coming quarters.
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