Kansai Nerolac Paints Limited (KNPL), one of the leading Paint companies in India, today at the Board meeting 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 Crores a growth of 6.6 % over the corresponding quarter of the previous year.
EBIDTA was Rs. 249.0 crores a growth of 13 % over the same quarter of the previous year. Lower Non- operating income and higher depreciation resulted in Net profit growth of 5.8%.
Commenting on the results, Mr. 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. Our subsidiaries in Nepal and Bangladesh also have done well.
During the quarter, costs of inputs were stable and in line with the previous quarter trend. 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 Industrial for the near future.”