Kansai Nerolac Paints

Decorative demand was affected due to heavy and extended monsoons

Net sales (including other operating income) of Kansai Nerolac Paints remained flat at  Rs 1954.18 crore. 

Operating profit margin has improved from 10.9% to 11%, leading to 2% increase in operating profit to Rs 215.26 crore.  Other income rose 6% to Rs 28.43 crore.  PBIDT rose 2% to Rs 243.69 crore.  Provision for interest rose 6% to Rs 7.71 crore. 

PBDT rose 2% to Rs 235.98 crore.  Provision for depreciation rose 12% to Rs 54.31 crore. 

Profit before tax down 1% to Rs 181.67 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 48.36 crore, compared to Rs 63.01 crore, down 23%. 

Minority interest decreased 47% to Rs -1.62 crore.  Net profit attributable to owners of the company increased 10% to Rs 134.93 crore. 

Commenting on the results, Mr. Pravin Chaudhari, Managing Director, Kansai Nerolac Paints Ltd said, ?During the quarter, growth in the Automotive segment was sustained. This momentum is expected to sustain. Company also saw good growth in Performance Coating. Going forward this segment is also expected to do well on the back of good order flows. Both Automotive and Performance Coatings are expected to benefit from boost in demand due to the cut in GST for the Auto majors and other OEMs as well as infrastructure push.

Overall demand in Decorative was affected due to heavy and extended monsoons. The company continues to do well in areas of Construction chemicals, waterproofing, wood finishes and projects. A shorter Diwali season and continued monsoons could impact growth in the short term. Raw material prices remained benign though there was considerable volatility witnessed in the forex markets along with Geopolitical uncertainty.

Looking forward we expect the momentum in both Automotive and Performance coatings to remain strong and a gradual recovery in Decorative.?

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Kansai Nerolac Paints rose 1% to Rs 4116.21 crore. 

Operating profit margin has declined from 13.3% to 12.6%, leading to 4% decrease in operating profit to Rs 518.41 crore.  Other income rose 34% to Rs 81.04 crore.  PBIDT remained flat at Rs 599.45 crore.  Provision for interest rose 4% to Rs 15.07 crore. 

PBDT fell 1% to Rs 584.38 crore.  Provision for depreciation rose 11% to Rs 107.25 crore. 

Profit before tax was down 3% to Rs 477.13 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 128.23 crore, compared to Rs 146.23 crore, down 12%. 

Minority interest decreased 23% to Rs -6.94 crore.  Net profit attributable to owners of the company increased 1% to Rs 355.84 crore.

Outlook of Indian Paint Industry

The size of domestic paint industry is estimated at around Rs. 77500 crores as of March 2025. The good growth in infrastructure, core sector as well as automobile and real estate is likely to have a positive effect on the overall demand of paint for the industry in the long run.

 

The stock trades at Rs 249

 

 

Kansai Nerolac Paints : Consolidated Results
Particulars	2509 (03)	2409 (03)	Var.(%)	2509 (06)	2409 (06)	Var.(%)	2503 (12)	2403 (12)	Var.(%)
Net Sales	1,954.18	1,951.37	0	4,116.21	4,084.43	1	7,822.97	7,801.44	0
OPM (%)	11.0	10.9		12.6	13.3		12.1	13.2
OP	215.26	211.91	2	518.41	541.52	-4	942.32	1,027.75	-8
Other Inc.	28.43	26.7	6	81.04	60.53	34	139.15	91.88	51
PBIDT	243.69	238.61	2	599.45	602.05	0	1,081.47	1,119.63	-3
Interest	7.71	7.28	6	15.07	14.49	4	31.25	29.21	7
PBDT	235.98	231.33	2	584.38	587.56	-1	1,050.22	1,090.42	-4
Depreciation	54.31	48.56	12	107.25	96.7	11	201.7	190.46	6
PBT	181.67	182.77	-1	477.13	490.86	-3	848.52	899.96	-6
Share of Profit/(Loss) from Associates	0	0		0	0		0	0	-
PBT before EO	181.67	182.77	-1	477.13	490.86	-3	848.52	899.96	-6
EO Income	0	0		0	0		629.51	661.25	-5
PBT after EO	181.67	182.77	-1	477.13	490.86	-3	1478.03	1561.21	-5
Taxation	48.36	63.01	-23	128.23	146.23	-12	368.7	385.35	-4
PAT	133.31	119.76	11	348.90	344.63	1	1109.33	1175.86	-6
Minority Interest (MI)	-1.62	-3.03	-47	-6.94	-8.99	-23	-33.62	-9.58	-251
Net profit	134.93	122.79	10	355.84	353.62	1	1142.95	1185.44	-4
EPS (Rs)*	#	#		#	#		8.1	8.5
Notes
* EPS is on current equity of Rs 80.84 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
Figures in Rs crore
Source: Capitaline Corporate Database

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