Kansai Nerolac Paints drops 1% after Q3 PAT slumps 35% yoy to Rs132cr

2 Feb 2022 , 09:16 AM

Kansai Nerolac Paints Limited (KNPL), one of the leading Paint companies in India, at the Board meeting has announced its unaudited results for the third quarter of financial year 2021-22.

For the quarter, the company earned Net revenue from operations of Rs1694cr, a growth of 13.1% over the corresponding quarter of the previous year.

For the nine months period, the company earned Net Revenue from operations of Rs4536cr a growth of 32.8 % over the corresponding period of the previous year.

EBIDTA was at Rs.210cr, a de-growth of 28.5% over Q3 of 2020-21. PAT was at Rs132cr, a de-growth of 34.7 % over Q3 of 2020-21.

For the nine months period EBITDA was at Rs564cr, a de-growth of 11.4% over the same period of 2020-21. PAT for the nine months period was Rs 350cr, a degrowth of 13 % over the same period of 2020-21.

Commenting on the results, H. M. Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints Ltd 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.

Outlook of Indian Paint Industry
The size of domestic paint industry is estimated at around Rs55000cr 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.

On Wednesday early morning trade, Kansai Nerolac Paints was trading at Rs553.25 per share lower by 1.13% on Sensex.