Wednesday, 6 May 2020

Kansai Nerolac Paints Ltd Announces Q4 Results FY 2019-2020


Kolkata, May 6, 2020: Kansai Nerolac Paints Limited (KNPL), one of the leading Paint companies in India, today at the Board meeting announced its audited results for the fourth quarter of financial year 2019-20. For the quarter, the company declared Net revenue of Rs. 988 Crores a de-growth of 14.3 % over the corresponding quarter of the previous year. For the twelve months ending March 31, 2020, the company had a Net revenue of Rs. 4943 Crores a de-growth of 4.5 % over the corresponding period of the previous year.
EBIDTA was at Rs. 128 crores a de- growth of 14.6 % over the same quarter of the previous year. PAT was at Rs 71 crores a de-growth of 23 % over the same quarter of the previous year. For the twelve months ending March 31, 2020, company reported an EBITDA of Rs. 782 Crores a growth of 5.3 % over the same period last year. Net profit growth was up by 14.6 %. Board recommended a dividend of 315 % compared to 260 % last year.
Commenting on the results, Mr. H. M. Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints Ltd said, “Sales and Bottomline was impacted this quarter due to the outbreak of COVID 19. Demand for Automotive paints continued to be severely impacted due to the continued unprecedented slowdown in Auto. Decorative growth was better.
Despite the year being extremely challenging, due to an aggressive cost control program and judicious management of overheads the company was able to improve EBTDA by 5.3 % and improve EBITDA margin by 150 basis points. PBT was impacted due to lower other income and higher depreciation. In the challenging business situation, company was also able to release cash of Rs. 123 Crores from working capital.
Looking forward, the prolonged uncertainty due to COVID has created further demand destruction in the near term.
Outlook of Indian Paint Industry:
The size of domestic paint industry is estimated at Rs.52000 crores as of Mar 2020. 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.
About Kansai Nerolac Paints Ltd:
Kansai Nerolac Paints now in its 100th year has been at the forefront of paint manufacturing pioneering a wide spectrum of quality paints. Kansai Nerolac is one of the leading paint company in India and is the leader in Industrial segment, having a turnover of Rs. 5487 crores. The company has six 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. Please visit www.nerolac.com

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