Kansai Nerolac Reports 79% YoY Increase in Fourth Quarter
Kansai Nerolac Paints reported a 78.8% jump in stand-alone net profit to Rs 127.80 crore on a 34.7% increase in net sales to Rs 1,321.09 crore in Q4 FY21 compared to Q4 FY20.
Profit before tax in Q4 FY21 was Rs 171.25 crore, up 73.9% from Rs 98.45 crore in Q4 FY20. EBIDTA as of Q4 FY21 was Rs 203 crore, a growth of 59.1% compared to Q4 FY20.
The company reported a 0.7% increase in stand-alone net profit to Rs 539.03 crore on a 5.3% drop in net sales to Rs 4,655.69 crore during the year ended March 31, 2021 by report for the year ended March 31, 2021.
For the fiscal year, EBITDA was Rs 833 crore, an increase of 6.6% over fiscal year 2019-20.
The board of directors of the company has recommended a final dividend of Rs 4 per share, which includes a special dividend of Rs 2 per share for the year.
Commenting on the results, HM Bharuka, vice president and general manager of Kansai Nerolac Paints, said: The quarter saw continued strong demand for decorative and industrial paints. The home decor and industrial sectors saw strong double-digit volume growth during the quarter. However, that number should be read on the low base from March of last year when the lockdown was announced.
The continued aggressive cost control program as well as judicious management of overheads enabled the company to post strong EBITDA growth. RM prices showed a very strong increase during the quarter, which led to a sharp increase in material costs. The full impact of this situation is not yet perceived due to the inventory. Inflation is expected to continue with continued exchange rate volatility and the tightening of the supply chain.
The company has already taken some price increase. Further increases will be taken in the future to offset inflation.
Looking ahead, the company is optimistic that demand will pick up steam, although in the short term the effect of the second wave of COVID has had an impact on demand.
In its outlook for the paint industry, the company said the size of the national paint industry was estimated at Rs 54,000 crore as of March 2021. Good growth in infrastructure, basic sector as well as automotive and real estate is expected to have a positive impact. long-term effect on aggregate paint demand for the industry.
Kansai Nerolac Paints is a paint manufacturing company that offers a wide variety of quality paints. The company has six manufacturing units strategically located across India and a strong dealer network across the country. It manufactures a diverse line of products ranging from decorative paint coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings for most industries.
The certificate lost 0.20% to close at Rs 590.95 on BSE on Friday.
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