Mumbai, July 30, 2021: Kansai Nerolac Paints Limited (KNPL), one of the leading Paint companies in India, today at the Board meeting announced its unaudited results for the first quarter of financial year 2021-22. For the quarter, the company declared Net revenue of Rs. 1301.2 Crores, a growth of 117.6 % over the corresponding quarter of the previous year.
EBIDTA was at Rs. 187.1 Crores, a growth of 132.4 % over the same quarter of the previous year. PAT was at Rs 118.7 Crores, a growth of 177.8 % over the same quarter of the previous year.
Commenting on the results, Mr. H. M. Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints Ltd said, “The quarter began on an extremely positive note. With the announcement of the lockdown across several states towards the end of April, demand was once again affected across both Decorative and Industrial in April and May. In June there was a revival in Decorative demand once the restrictions eased. Industrial demand continued to be impacted.
Continuing the trend of earlier quarters, raw material prices further hardened resulting in extremely high inflation coupled with tightness in supplies. Forex markets continued to be volatile. The company has partly increased prices in Decorative. In Industrial, also the company has increased prices and is making sustained effort to obtain price increases to offset the impact of inflation.
The company focused on selling a better product mix. It continued with the aggressive cost control program and judicious management of overheads. It is because of these steps that the drop in EBITDA has been contained.
Looking forward, with the vaccination program underway and a forecast of a good monsoon, demand should recover. Company would be aggressive in seeking price increases.
Outlook of Indian Paint Industry:
The size of domestic paint industry is estimated at around Rs. 55000 crores as of March 2021. 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 101st 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 paints, having a Net turnover of Rs. 4690 crores (FY 2020-21). 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