Kansai Nerolac Paints (KNPL), one of the leading Paint companies in India, today at the Board meeting announced its unaudited results for the third quarter of financial year 2022-23.
For the quarter, the company earned Net revenue from operations of Rs. 1717.1 crore, a growth of 1.4 per cent over the corresponding quarter of the previous year. EBIDTA was at Rs. 188.5 crore, a de-growth of 10.2 per cent over Q3 of 2021-22. PAT was at Rs. 112.3 Crore, a de-growth of 15.2 per cent over Q3 of 2021-22.
Other operating income of previous year’s Q3 included exceptional income of Rs 44.8 crore Excluding this, Net revenue is up by 4.1 per cent, EBITDA is up by 14.1 per cent and PAT is up by 13.5 per cent.
For the nine months period, the company earned Net Revenue from operations of Rs. 5475.9 crore a growth of 20.7 per cent over the corresponding period of the previous year. For the nine months period EBITDA was at Rs. 641.4 crores, a growth of 13.7 per cent over the same period of 2021-22. PAT for the nine months period was Rs 392.4 crore, a growth of 12.2 per cent over the same period of 2021-22.
Commenting on the results, Anuj Jain, Managing Director, Kansai Nerolac Paints said, “The quarter witnessed good demand in Automotive coatings. Demand in Decorative was impacted on account of early Diwali, extended monsoons and higher than normal channel stocking due to price increases during Oct 21 & Nov21.
Raw material prices though softening is still being carefully monitored given the volatility in crude and forex coupled with Geopolitical changes.
The company was able to conclude the price increases with all its key OEMs during the quarter which will help partly offset the high inflation witnessed over the last two years.
The company initiated various measures to increase growth in decorative. The measures include increase in feet on street, digital interventions, network expansion, new product launches and brand strengthening.
Judicious management of costs and overheads continued. Looking forward it is expected that demand would remain healthy in the short to medium term”.
Outlook of Indian Paint Industry:
The size of domestic paint industry is estimated at around Rs. 60000 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.