Kansai Nerolac drops after Q3 PAT slides 37% YoY to Rs 128 cr

1 Feb 2022 , 03:08 PM

On a consolidated basis, profit before tax (PBT) declined 37.21% year-on-year to Rs 171.92 crore in Q3 December 2021. Total expenses jumped 23.65% to Rs 1648.39 crore with cost of materials consumed rising 25.52% to Rs 1152.42 crore during the period under review.

On a standalone basis, for the quarter, the company earned net revenue from operations of Rs 1694 crore, a growth of 13.1% over the corresponding quarter of the previous year. EBIDTA was at Rs 210 crore, a de-growth of 28.5% over Q3 of 2020-21. PAT was at Rs 132 crore, a de-growth of 34.7% over Q3 of 2020-21.

Commenting on the results, H. M. Bharuka, vice chairman and managing director, Kansai Nerolac Paints said, The quarter witnessed a good demand for Decorative. In Auto, demand was muted on account of the semi-conductor chips shortages. On raw material costs, the quarter continued to witness inflationary pressures along with volatility in crude and exchange rates. Supply Chain tightness continued during the quarter. Company has not been able to encash the full benefit of demand. The company effected price increases in Decorative & cumulative price increase so far is more than 20%. Similarly, across all industrial segments an average price increase of around 18% has been implemented. Effect of these increases will be reflected going forward. Material costs continues to rise necessitating further price increase to offset this cost increase. Judicious management of costs and overheads continued. Looking forward it is expected that the impact of omicron on demand would be limited.

The company said that the size of domestic paint industry is estimated at around Rs. 55000 crores as of March 2021. 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.

Kansai Nerolac Paints is one of the leading paint company in India and is the leader in Industrial paints. The company has strategically located manufacturing units all over India and a strong dealer network across the country. The company manufactures a diversified range of products ranging from decorative paints coatings for homes, offices, hospitals, and hotels to sophisticated industrial coatings for most of the industries.

Powered by Capital Market – Live News