Kansai Nerolac Paints Q1 Results: Profit Falls 69.3%, But Beats Estimates

Kansai Nerolac Paints Ltd. on Monday reported a 69.3% year-on-year decline in net profit for the first quarter of fiscal 2025, though it beat analysts' estimates.

The paint manufacturer recorded a net profit of Rs 225 crore for the quarter-ended June, as compared to Rs 734 crore in the same quarter last year, according to its stock exchange notification. This was above the Rs 205.1-crore estimate by analysts tracked by Bloomberg.

Revenue decreased by 1.1% year-on-year for the three months ended June, reaching Rs 2,133 crore. Analysts had projected revenue of Rs 2,195 crore.

Operating income, or earnings before interest, taxes, depreciation, and amortisation, fell 0.7% year-on-year to Rs 329 crore. The Ebitda margin was flat at 15.4%. Analyst estimates for Ebitda and Ebitda margin tracked by Bloomberg were Rs 296.1 crore and 13.5%, respectively.

The company expects the growth in infrastructure, automobile and real estate to have a positive impact on demand of paint for the industry in the long run.

"Looking forward, with a favourable monsoon, demand should improve for decorative (segment). Given the continued thrust on infrastructure growth, new project and order pipeline, we believe demand for performance coatings should be strong,” said Anuj Jain, managing director, Kansai Nerolac Paints.

The cost of raw materials has been increasing due to geopolitical issues, but the company is taking steps to mitigate the increase in cost, he said.

Shares of the company closed 2.25% higher at Rs 281.50 per share, as compared to a 0.02% advance in the NSE Nifty 50.