Kansai Nerolac Paints Ltd announces Q1 results of FY 2019-2020

Kansai Nerolac Paints Ltd (KNPL) has been at the forefront of paint manufacturing for more than 90 years. KNPL is one of the leading paint companies in India having a turnover of Rs. 5682 crore. The company announced its audited results for the first quarter of financial year 2019-20. For the quarter, the company declared net sales of Rs. 1456.8 crore a growth of 6.6 per cent over the corresponding quarter of the previous year.

EBIDTA was Rs. 249 crore, a growth of 13 per cent over the same quarter of the previous year. Lower non-operating income and higher depreciation resulted in a growth of 5.8 per cent in net profit.

Commenting on the results, H. M. Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints Ltd, said, “Decorative segment has seen good double-digit volume and value growth. This has helped offset the huge effect of the unprecedented slow-down in the automotive segment where the company has a significant exposure. The company has taken steps to enhance its product portfolio by entering niche markets such as adhesives, construction chemicals, coil coatings, premium wood coatings and functional powder coatings through acquisitions and internal initiatives. The effect of these efforts will be visible in the coming quarters.”

He further added, “This along with tight control on costs has helped improve the bottom-line. Continued exchange rate and crude oil volatility have kept raw material price levels high. In the industrial segment the company still seeks to get price increase to compensate for the overall inflation. The company expects demand in Decorative segment to remain buoyant but expects challenges of demand to continue in the Industrial segment for the near future. Our subsidiaries in Nepal and Bangladesh have also done well.”