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Kansai
Nerolac Paints consolidated net sales increased 12.82% to Rs 1733.59 crore in
Q4FY23 compared to Q4FY22. Operating
profit margin has jumped from 5.46% to 9.70%, leading to 100.33% rise in
operating profit to Rs 168.12 crore. Raw
material cost as a % of total sales (net of stock adjustments) decreased from
68.69% to 62.33%. Purchase of finished
goods cost rose from 5.79% to 6.11%.
Employee cost decreased from 6.40% to 5.75%. Other expenses rose from 14.13% to 16.21%.
PBIDT rose
114.37% to Rs 177.82 crore. Provision
for interest fell 13.04% to Rs 6.8 crore.
PBDT rose
127.63% to Rs 171.02 crore. Provision
for depreciation rose 6.44% to Rs 45.81 crore.
Profit
before tax grew 290.18% to Rs 125.21 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 28.97
crore, compared to Rs 12.92 crore.
Effective tax rate was 23.14% compared to 40.26%.
Net profit
attributable to owners of the company increased 279.18% to Rs 93.77 crore.
Equity
capital stood at Rs 53.89 crore as of 31 March 2023 to Rs 53.89 crore as of 31
March 2022. Per share face Value
remained same at Rs 1.00.
Promoters’
stake was 74.99% as of 31 March 2023 compared to 74.99% as of 31 March 2022.
Commenting on the results, Mr. Anuj
Jain, Managing Director, Kansai Nerolac Paints Ltd said, “During the quarter all businesses
have done well. Though raw material prices have softened, for the year,
inflation is still positive. Judicious cost management efforts were continued.
This along with various initiatives undertaken in previous quarters have led to
the gross margins improving both over the corresponding quarter last year and
sequentially. The company continued with growth initiatives in Decorative and
Performance coating. These initiatives which are in the area of feet on street,
digital interventions, influencer outreach, new product launches, approvals,
and projects have gathered momentum. The results are encouraging, and these
initiatives are being expanded to more cities. Looking forward demand is
expected to remain healthy in the near term.”
Full year results analysis
Net sales
of Kansai Nerolac Paints have increased 18.42% to Rs 7542.73 crore. Operating profit margin has jumped from
10.20% to 10.84%, leading to 25.97% rise in operating profit to Rs 817.99
crore. Raw material cost as a % of total
sales (net of stock adjustments) decreased from 64.82% to 64.01%. Purchase of finished goods cost rose from
6.03% to 6.16%. Employee cost decreased
from 5.34% to 4.94%. Other expenses
rose from 14.07% to 14.19%.
Other
income rose 2.24% to Rs 25.98 crore.
PBIDT rose 25.08% to Rs 843.97 crore.
Provision for interest rose 1.43% to Rs 29 crore. Loan funds declined from Rs 318.71 crore as
of 31 March 2022 to Rs 287.04 crore as of 31 March 2023. Inventories rose to Rs 1,729.13 crore as of
31 March 2023 from Rs 1,629.55 crore as of 31 March 2022. Sundry debtors were higher at Rs 1,237.91
crore as of 31 March 2023 compared to Rs 1,093.33 crore as of 31 March
2022. Cash and bank balance rose to Rs
126.86 crore as of 31 March 2023 from Rs 106.00 crore as of 31 March 2022. Investments rose to Rs 501.36 crore as of 31
March 2023 from Rs 210.54 crore as of 31 March 2022 .
PBDT rose
26.12% to Rs 814.97 crore. Provision for
depreciation rose 6.07% to Rs 180.08 crore.
Fixed assets increased to Rs 2,201.29 crore as of 31 March 2023 from Rs
2,200.96 crore as of 31 March 2022.
Intangible assets stood at Rs 19.78 crore.
Profit
before tax grew 33.27% to Rs 634.89 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 166.42
crore, compared to Rs 133.26 crore.
Effective tax rate was 26.21% compared to 27.97%.
Minority
interest increased 67.47% to Rs -5.11 crore.
Net profit attributable to owners of the company increased 31.97% to Rs
473.58 crore.
Equity
capital stood at Rs 53.89 crore as of 31 March 2023 to Rs 53.89 crore as of 31
March 2022. Per share face Value
remained same at Rs 1.00.
Promoters’
stake was 74.99% as of 31 March 2023 ,compared to 74.99% as of 31 March 2022
.
Cash flow
from operating activities increased to Rs 408.25 crore for year ended March
2023 from Rs 24.77 crore for year ended March 2022. Cash flow used in acquiring fixed assets
during the year ended March 2023 stood at Rs 123.17 crore, compared to Rs
219.01 crore during the year ended March 2022.
The Board
has recommended a dividend of 270% (Rs. 2.70 per share) for the financial year
ended March 31, 2023, as compared to total dividend of 225% (Rs. 2.25 per
share) of the previous year. The Board has also considered and approved Issue
of 1 Bonus Equity shares of face value Re. 1 each against 2 equity share of
face value Re. 1 each.
The stock
trades at Rs 403.
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Kansai Nerolac Paints : Consolidated Results
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Particulars
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2212 (03)
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2112 (03)
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Var.(%)
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2303 (12)
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2203 (12)
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Var.(%)
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Net Sales
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1,733.59
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1,536.60
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13
|
7,542.73
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6,369.35
|
18
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OPM (%)
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9.7
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5.5
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10.8
|
10.2
|
|
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OP
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168.12
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83.92
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100
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817.99
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649.36
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26
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Other Inc.
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9.7
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-0.97
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LP
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25.98
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25.41
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2
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PBIDT
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177.82
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82.95
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114
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843.97
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674.77
|
25
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Interest
|
6.8
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7.82
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-13
|
29
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28.59
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1
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PBDT
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171.02
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75.13
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128
|
814.97
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646.18
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26
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Depreciation
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45.81
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43.04
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6
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180.08
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169.77
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6
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PBT
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125.21
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32.09
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290
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634.89
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476.41
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33
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Share of
Profit/(Loss) from Associates
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0
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0
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0
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0
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PBT before
EO
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125.21
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32.09
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290
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634.89
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476.41
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33
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EO Income
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0
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0
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0
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0
|
|
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PBT after
EO
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125.21
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32.09
|
290
|
634.89
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476.41
|
33
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Taxation
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28.97
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12.92
|
124
|
166.42
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133.26
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25
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PAT
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96.24
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19.17
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402
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468.47
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343.15
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37
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Minority
Interest (MI)
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2.47
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-5.56
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PL
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-5.11
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-15.71
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-67
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Net profit
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93.77
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24.73
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279
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473.58
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358.86
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32
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EPS (Rs)*
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#
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#
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8.8
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6.7
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Notes
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* EPS is on
current equity of Rs 53.89 crore, Face value of Rs 1, Excluding extraordinary
items.
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# EPS is
not annualised
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bps : Basis
points
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Figures in
Rs crore
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Source:
Capitaline Corporate Database
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