Kansai Nerolac Paints' net profit show marked decline in latest June quarter compared to same period last year
Kolkata/IBNS: Kansai Nerolac Paints Limited (KNPL), one of the leading paint companies in India, reported a year over year decline in its net profit for the quarter ended June 30, 2020.
The company posted net profit of Rs 29.64 crore during the reported quarter compared to Rs 144.69 posted during the year ago quarter.
The company declared net revenue of Rs 598.1 crores, down 59.1% from the corresponding quarter of the previous year.
EBITDA was at Rs 80.5 crores, down 67.7% over the same quarter of the previous year.
PAT was Rs 42.7 crores, down 71.1 % during the same period.
According to H. M. Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints Ltd, demand was significantly hampered owing to the pandemic related lock-down, affecting sales and bottom line.
Said Bharuka, “Sales in April were a complete washout across. Sales of Decorative has seen revival in May and June with the company registering double digit volume growth in both the months. Industrial sales continued to be impacted in both May and June due to the slow recovery of the end customers.”
“Despite the severe drop in topline, an aggressive cost control program and judicious management of overheads helped the company report profit. EBITDA drop was also contained to just 350 basis points. Basic raw material prices were benign this quarter though there was volatility in forex rates,” he said.
According to industry reports, the size of domestic paint industry is estimated at Rs 52,000 crores as of March 2020.
Kansai Nerolac Paints, now in its 100th year, has six manufacturing units spread across India and manufactures a diversified range of products ranging from decorative paints coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings for most of the industries.