Mumbai, May 2, 2019:Kansai Nerolac Paints Limited (KNPL), one of the leading Paint companies in India, today at the Board meeting announced its audited results for the fourth quarter of financial year 2018-19. For the quarter, the company declared Net sales of Rs.1142Croresa growth of 4 % over the corresponding quarter of the previous year and net sales of Rs. 5138.9crores for entire year a growth of 12.5 % over the last financial year.
EBIDTA was Rs. 149.6 crores a degrowth of 11.4 over the same quarter of the previous year.For the entire year, EBIDTA was Rs. 742 Crores a degrowth of 6 % over the same period of the previous year.
Commenting on the results, Mr. H. M. Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints Ltd said,“Continuing the trend seen in the previous quarter, the Decorative segment continued to see growth this quarter. The growth in Decorative was lower than previous quarters. The Automotive segment witnessed a negative growth this quarter. A similar slackening in demand was also seen on other OEM segments. This has led to an overall lower demand for Industrial products in general. Whilst cost pressures abated as compared to earlier quarter, prices of derivatives stillremainhigh. During the quarter crude was not able to maintain the low levels witnessed in December and continued to rise. The rupee dollar exchange rate also continued to be volatile. The company has been able to pass on the cost increase in decorative. In Industrial the company has been only able to only partly get price increases to offset increase in material costs. This is reflected in the bottom-line. The company expects the growth momentum to be subdued for the immediate future though it is hopeful for a good momentum for the year as a whole.”
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.