Kansai Nerolac’s Q2 net profit slumps ~31%; revenue flat

7 Nov 2024 , 09:46 AM

Kansai Nerolac Paints Ltd reported a 30.7% year-on-year (YoY) decline in net profit to ₹122.8 Crore for the second quarter ended September 30, compared to ₹177.2 Crore in the same period last fiscal year.

The company’s income from operations fell 0.3% to ₹1,951.4 Crore, compared to ₹1,956.5 Crore in the previous year.

In the second quarter of FY24, EBITDA climbed by 22.4% to ₹212 Crore, up from ₹177.2 Crore. The EBITDA margin was 10.9% in the reporting quarter, compared to 14% in the same period of FY24. 

Net revenue for the half year remained consistent at ₹3,914 Crore. EBITDA was ₹549 Crore, down 9% from the same time the prior year. Profit before tax and unusual items was ₹516 Crore, a 6% decrease from the same period in the prior year.

Anuj Jain, Managing Director of Kansai Nerolac Paints Ltd, stated that the company is experiencing excellent growth in paint+ products, services, projects, construction chemicals, and wood finishes. Heavy and lengthy monsoons impacted overall demand for decoratives. A robust monsoon would be beneficial, and we expect demand to increase in the second half.

Automotive growth has been strong as a result of various initiatives, and we expect this trend to continue. Performance coating has also performed well, and it is likely to continue to do so thanks to a healthy order pipeline. Raw material costs originally followed an inflationary trend, but as the quarter continued, they gradually began to soften, he added.

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