Kansai Nerolac Q4 Profit Drops 6.5%

7 May 2025 , 04:58 PM

Kansai Nerolac Paints Ltd (KNPL) announced its Q4FY25 result on 6th May 2025. The net revenue went up at 2.7% year-on-year (YoY) at ₹1,817 crore in Q4FY25 compared with ₹1,769.4 crore in Q4FY24. Although the revenue was boosted, the net profit went down by 6.5% at ₹108.5 crore from ₹116 crore in the previous corresponding quarter last year.

EBITDA for the quarter went down 7.3% to ₹166 crore from ₹179 crore in Q4 FY24. EBITDA margin also declined to 9.1% from 10.1% of the comparable quarter of the earlier year, due to the fact that the company experienced pressure on profitability primarily on account of forex volatility.

In the full fiscal year FY25, KNPL’s top line was ₹7,496.7 crore, an increase of 1.4% compared with the corresponding period of the earlier year. But FY25 EBITDA declined by 4.8% to ₹974.1 crore compared to the earlier corresponding period of the earlier fiscal.

Profit Before Tax (PBT) excluding exceptional items too declined by 1.7% and amounted to ₹907.4 crore during FY25.

A total dividend of ₹3.75 per equity share for the fiscal year, including a special dividend of ₹1.25 per share against the same payout ratio as the previous fiscal was announced by the Board of Directors.

Managing Director Pravin Chaudhari reported that the Decorative Paints, Paint+, Construction Chemicals, Wood Finishes, and Projects divisions recorded steady performance in the quarter. He reported that the demand for the decorative paints business is gradually gaining momentum in the face of pressures like constricted liquidity and muted consumer spending.

The company’s Automotive and Performance Coatings businesses registered healthy orders growth on the back of a strong order pipeline coupled with execution-oriented initiatives. Despite stable raw material prices, currency volatility affected the company’s margins and overall profitability went down.

Looking ahead, Chaudhari presented a favorable industry trend in hope that an anticipated good monsoon will enhance demand in the paints segment.

With the value of the Indian paint market at ₹75,000 crore in March 2024, growth will be supported by increasing infrastructure, increasing real estate activity, and increasing auto sector demand.