CALCUTTA, June 11: Berger Paints India posted a net profit of Rs 13.79 crore, an increase of 40.02 per cent from the previous year's Rs 9.85 crore. Gross profit after interest but before depreciation and tax was Rs 23.72 crore against last year's Rs 19.69 crore.

It has recorded a sales turnover of Rs 311.54 crore for the year ended March 31, 1997, up 12.44 per cent over the previous year's Rs 276.17 crore.Sustaining a dividend increase for four consecutive years, the company's board on Wednesday proposed a dividend of 60 per cent for the year,including an interim of 30 per cent. Last year, it paid a total dividend of 50 per cent.

The company expects to improve sales further in the current year as the new paints factory at Pondicherry add to its strength, Berger Paints officials told The Financial Express.

Sales growth was nearly double the industry average of around 7 per cent.``The thrust of the current financial year will continue to be on the decorative segment. Besides, the benefits of the Pondicherry factory - like tax concessions and reduction in freight cost - will accrue to Berger by 1997-98,'' an official said.

The paint factory commissioned at Pondicherry in May this year is expected to begin full budgeted production within the next few weeks, he said.

Berger Paints' projects like the new paint manufacturing unit at Pondicherry, the automotive coatings unit at Gujarat and expansion of the powder manufacturing unit at Howrah, near Calcutta, have been completed, he said.

``The projects have been completed on time by the end of 1996 and the benefits are expected to accrue to the company in the current financial year,'' the official said.

He said the modernisation programme — the launch of the computerised Colour Bank outlets — had been successful with a total of 100 machines being installed to date.

Profit before tax was Rs 22.06 crore against the previous year's Rs 18.46 crore.

For the six months ended March 31, 1997, Berger posted a sales of Rs 160.77 crore against the previous year's Rs 140.39 crore. Net profit was Rs 7.85 crore, against Rs 5.57 crore for the corresponding period in the previous year.

Profit before tax for the six-month period was Rs 11.91 crore, against Rs 10.36 crore for the corresponding period in the previous year.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.