Kansai Nerolac Paints slips after weak Q4 performance

11 May 2022 , 09:26 AM

Net sales during the quarter increased by 5.3% YoY to Rs 1,536.60 crore. Total expenditure jumped by 16.6% to Rs 1,452.68 crore in Q4 FY22 over Q4 FY21, due to higher raw material costs (up 18.5% YoY), higher other expenses (up 11.9% YoY) and higher employee expenses (up 36.9% YoY). Profit before tax in Q4 FY22 stood at Rs 32.09 crore, down by 80.9% from Rs 168.44 crore in Q4 FY21. Current tax outgo during the period under review was Rs 13.90 crore (down 66.1% YoY). The paint manufacturer recorded 32.3% fall in consolidated net profit to Rs 358.86 crore on a 25.5% rise in net sales to Rs 6,369.35 crore in FY22 over FY21. Anuj Jain, managing director, Kansai Nerolac Paints Ltd said, ?The quarter witnessed impact in terms of demand for decorative on account of the steep price increase towards end of Q3 FY 21-22. In automotive, passenger vehicles demand was good though impacted because of supply side constraints. On raw material costs, the quarter continued to witness inflationary pressures along with volatility in crude and exchange rates on account of the tough geo-political situation globally. Overall demand situation is expected to remain healthy, and company remains positive and well poised to do better. It is expected that price increases taken in FY 21-22 will accrue in the coming year. Company will strive for more price increases in Industrial.? The board has recommended a final dividend of Re 1 per share. In addition, the company had declared interim dividend of Rs 1.25 per share paid on 22 November 2021. Accordingly, the total dividend is Rs 2.25 per share for the financial year ended 31 March 2022. Kansai Nerolac Paints is one of the leading paint company in India and is the leader in Industrial paints. 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