Kansai Nerolac Paints Q4 Results: Profit Rise Nearly 19%, But Misses Estimates
Kansai Nerolac announced an investment of Rs 20.1 crore. The company plans to augment the capacity by 460 metric tonne per month at its Sayakha plant.
Kansai Nerolac Paints Ltd.'s net profit jumped over 18% but missed the street estimates in the quarter ended March 2024. Net profit of the paint company surged to Rs 114.29 crore in the fourth quarter, according to an exchange filing. That compares with a consensus estimate of Rs 130.88 crore, according to analysts tracked by Bloomberg.
Kansai Nerolac Q4 Results Highlights: (Consolidated YoY)
Revenue rose 2.06% to Rs 1,769.39 crore. (Bloomberg estimate: Rs 1,814.40 crore).
Ebitda rose 6.47% at Rs 179.01 crore. (Bloomberg estimate: Rs 216.21 crore).
Margin stood at 10.11% versus 9.69% (Bloomberg estimate: 11.90%).
Net profit rose 18.75% at Rs 114.29 crore. (Bloomberg estimate: Rs 130.88 crore)
Kansai Nerolac announced an investment of Rs 20.1 crore. The company plans to augment the capacity by 460 metric tonne per month at its Sayakha plant. Additionally, it will allocate Rs 29.4 crore towards expanding the capacity by 390 metric tonne per month at its Bawal plant.
“The demand for Industrial coatings though good, moderated from previous quarter. Decorative once again recorded double digit volume growth. Raw material prices were stable. Gross margins improved over the corresponding quarter last year due to the benign raw material cost," Anuj Jain, managing director at Kansai Nerolac Paints said.
The initiatives in the areas such as feet-on-street, digital, influencer outreach, new product launches, approvals, and projects are yielding results for the company. Going forward, the forecast of a good monsoon should augur well for paint industry, Jain said.
Shares of the company closed 1.02% higher at Rs 288.30 apiece on Friday, compared with a 0.76% decline in the benchmark Nifty 50.
