Kansai Nerolac Paints Q4 net profit jumps five-fold to Rs 96 crore

Kansai Nerolac Paints Ltd on Monday reported a more than fivefold growth in its consolidated net profit to Rs.96.24 crore for the fourth quarter ended March 2023.

Kansai Nerolac Paints Ltd (KNPL) announced in a regulatory filing that the company posted consolidated net profit of Rs. 19.17 crore in the January-March period last year.

Its revenue from operations increased by 12.81 per cent during the quarter under review to Rs.1,733.59 crore. He added that it was Rs 1,536.60 crore in the corresponding period of the last financial year.

Total Expenses increased by 7.61% at Rs.1,618.08 crore compared to Rs.1,503.54 crore in Q4FY22.

KNPL’s total income in the March quarter was Rs. 1,743.29 crore, up by 13.52 per cent.

KNPL Managing Director Anuj Jain said all companies performed well in the March quarter.

“Although raw material prices were lower, inflation remains positive for the year. Prudent cost management efforts continued. This combined with various initiatives undertaken in previous quarters resulted in improved gross margins during the corresponding quarter last year and on respectively,” he said.

KNPL continued with growth initiatives in decorative and performance coatings.

For the entire period from 2022 to 2323, KNPL’s net profit jumped by 36.52 per cent to Rs.468.47 crore. It was ₹343.15 crore in FY22.

Its consolidated revenue from operations in FY23 increased by 18.42% to Rs.7,542.73 crore from Rs.6,369.35 crore a year earlier.

On the outlook, Jin said, “Looking forward, demand is expected to remain healthy in the near term.”

While sharing the forecast of the Indian paint industry, KNPL said that the size of the domestic paint industry is estimated to be around Rs. 70,000 crore as of March 2023.

“Good growth in the infrastructure and primary sector as well as automotive and real estate is likely to have a positive impact on the overall coatings demand for the industry in the long term,” he said.

Meanwhile, KNPL also said that its Board of Directors in a meeting held on Monday has recommended a dividend of 270 per cent, which is Rs 2.70 per share of Re 1 for the financial year ending March 31, 2023.

He also approved “a proposal to declare bonus shares in the ratio of 1:2, subject to the approval of the shareholders of the company.”

It also approved the appointment of Praveen D Chaudhary as a non-executive director of the company effective 26 June 2023.

Shares of Kansai Nerolac Paints Ltd settled on Monday at Rs 403.20 on BSE, up 2.17 per cent from the previous close.