Mumbai, Jan 30, 2019: Kansai Nerolac Paints Limited (KNPL), one of the leading Paint companies in India, today at the Board meeting announced its unaudited results for the third quarter of financial year 2018-19. For the quarter, the company declared net sales of Rs. 1343.6 Crores, a growth of 17.9 % over the corresponding quarter. For the nine months ended 31st December the company declared net sales of Rs. 3996.9 Crores a growth of 15.1 % over the corresponding period last year.
EBIDTA was Rs. 177 crores de-growth of 7.9% over the same quarter of the previous year. For the nine months EBITDA was at Rs. 592.4 Crores de-growth of 4.6% over the corresponding period last year. Net profit (PAT) was at Rs 112.7 crores de-growth of 9.9 % over the same quarter of the previous year. For the nine months Net Profit (PAT) was at Rs. 374.5 Crores de-growth of 8.8 % over the corresponding period last year.
Commenting on the results, Mr. H. M. Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints Ltd said, “During the quarter demand was positive for Decorative but very subdued for Industrial. A delayed festive season contributed to good demand during the quarter for Decorative. Lower growth in the Automotive industry especially negative growth in passenger cars led to a lower demand for Automotive and Industrial products in general.
Cost pressures continue to be high. This coupled with inability to pass on the full impact of cost increase to Industrial customers as well as inventory loss has impacted the bottom-line. Decorative margin continues to remain healthy.
From November there was a decline in crude oil prices and a marginal strengthening of the rupee vis a vis the dollar. However prices of derivatives still need to come down. KNPL has increased prices in Decorative twice during the quarter and has obtained some price increase in Industrial to partially offset the sharp inflation seen in material costs. The impact of these should be visible in the fourth quarter.
The company expects the growth momentum to be good in Decorative but subdued for Industrial for the near future.”