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Kansai Nerolac Paints Ltd Announces Q2 Results FY 2018-2019

10/22/2018

Mumbai, Oct 22, 2018:Kansai Nerolac Paints Limited(KNPL), one of the leading Paint companies in India, today at the Board meeting announced its unaudited results for the secondquarter of financial year 2018-19. For the quarter, the company declared net sales of Rs.1286 Crores, a growth of 10.7 % over the corresponding quarter. For the half year ended 30th September the company declared net sales of Rs. 2653 Crores a growth of 14.1% over the corresponding period last year.
 
EBIDTA wasRs195 crores down by 11.9 % over the same quarter of the previous year.For the half year EBITDA was at Rs. 415 Crores down by 3.1 % over the corresponding period last year.
 
Commenting on the results, Mr. H. M. Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints Ltd said,“During the quarter demand was dampened. Factors like GST rate changes in July leading to destocking by dealers, lingering monsoons over many parts of India and a delayed festival season affected demand for both Decorative and Industrial customers. Despite these conditions the company has had good growth. As was being seen in earlier quarters, uncertainty on the currency front and crude oil prices was more pronounced this quarter as well. Thisresulted in significant increase in input costs which impacted the bottom-line. KNPL has announced price increase in Decorative from 1stOctober and has taken price increases in Industrial as well, effect of which will be seen in subsequent quarters. Industrial customers are being approached for further price increase to compensate for high inflation. The company expects the growth momentum to be good in Decorative but subdued for Industrial in the near future. It is hoped that the rupee and crude oil will stabilize at the current levels. Any adverse change will put further pressure on margins. ”
 
Outlook of Indian Paint Industry:
 
The size of domestic paint industry is estimated at Rs.47000crores as of Mar 2018. 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.

 

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