Kansai Nerolac Q4FY22 PAT down -80.1% at Rs24.73 crore yoy on higher material and manpower costs

12 May 2022 , 12:37 PM

Kansai Nerolac Ltd reported 5.28% growth in sales revenues yoy for the Q4FY22 quarter on consolidated basis at Rs1,536.60 crore. On a sequential basis, revenues were lower for the quarter by -15.12%.

For the full year FY22, the revenues were higher by 25.5% at Rs6,369 crore. For Q4FY22, there was impact on the demand for decorative paints due to the steep price increases.

However, there was good demand for automotive paints although supply chain constraints remained a major constraint for the company.

Indian paint industry is pegged at value of Rs.60,000 crore annual sales, and leavers enough headroom for growth.

The consolidated net profit for Q4FY22 was down -80.1% at Rs24.73 crore while it was down on a sequential basis by -80.71%.

The fall in operating profits were largely on account of a sharp spike in raw material costs and manpower costs. Crude, packaging material and chemical costs have gone up.

EBITDA also fell 60% yoy as the higher paint prices constricted paint demand in a fairly significant way. Net margins stood at 1.61% in Q4FY22 quarter compared to 8.51% in Q4FY21. NPM was lower sequentially against 7.07% in Q3FY22.

Financial highlights for Mar-22 compared yoy and sequentially

	Kansai Nerolac
Rs in Crore	Mar-22	Mar-21	YOY	Dec-21	QOQ
Total Income (Rs cr)	₹ 1,536.60	₹ 1,459.57	5.28%	₹ 1,810.35	-15.12%
Net Profit (Rs cr)	₹ 24.73	₹ 124.28	-80.10%	₹ 128.03	-80.68%
Diluted EPS (Rs)	₹ 0.46	₹ 2.31		₹ 2.38
Net Margins	1.61%	8.51%		7.07%