Kansai Nerolac Q2 PAT rises 19% YoY

2 Nov 2022 , 11:55 AM

Total expenses rose by 19% to Rs 1,660.65 crore in Q2 FY23 over Q2 FY22, due to higher raw material costs (up 13% YoY) and higher other expenses (up 15% YoY). Raw material costs and other expenses, together accounted for 89% of the companys total expenses. EBIDTA in the second quarter was Rs 197.3 crore, a growth of 19.8% over the same quarter of the previous year. Anuj Jain, managing director, Kansai Nerolac Paints, said, ?The quarter witnessed good demand in Automotive with the easing of the supply chain challenges. Demand in Decorative was subdued due to extended rains. While inflation challenges continue, there has been a gradual cooling off in raw material prices as the quarter progressed. Rupee depreciated sharply during the quarter. Company has taken price increase in both Decorative and Industrial and continues to be in discussion with OEMs for further price increases. The Focus has been on improvement of the product mix in both Decorative and Industrial. The company has increased spend on marketing and advertising. A good monsoon augurs well for the paint demand going forward. Demand in quarter 3 could be subdued for Decorative in view of a very high base, early Diwali and prolonged monsoon.? With respect to outlook, Kansai Nerolac said that the size of domestic paint industry is estimated at around Rs 60,000 crore as of March 2022. 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 The company is one of the leading paint companies in India and is the leader in industrial paints. It has eight strategically located manufacturing units all over India and a strong dealer network across the country. It 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. The scrip slipped 2.98% to currently trade at Rs 469.50 on the BSE. Powered by Capital Market – Live News