OPM declined 10 basis points to 12.4% which saw OP fell 12% to Rs 134.21 crore.  

Other income fell 70% to Rs 3.84 crore and interest cost went up from Rs 3.25 crore to Rs 6.19 crore. As depreciation grew 35% to Rs 38.36 crore, PBT went down 30% to Rs 93.5 crore. Tax provisions fell 41% to Rs 28.14 crore. PAT fell 23% to Rs 65.36 crore. After considering Minority interest net profit grew 23% to Rs 67.22 crore.

FY'20 consolidated results  

In FY'20, consolidated sales fell 3% to Rs 5279.97 crore.  

OPM rose 130 basis points to 15.2% which saw OP rose 7% to Rs 804.46 crore.  

Other income fell 58% to Rs 25.53 crore and interest cost jumped from Rs 9.97 crore to Rs 20.91 crore. As depreciation grew 34% to Rs 142.12 crore, PBT fell 4% to Rs 666.96 crore. Tax provisions fell 39% to Rs 151.18 crore. PAT rose 15% to Rs 515.78 crore. After considering Minority interest net profit grew 15% to Rs 521.01 crore. 

Board recommended a dividend of 315 % compared to 260 % last year.

Commenting on the results, Mr. H. M. Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints Ltd said, "Sales and Bottomline was impacted this quarter due to the outbreak of COVID 19. Demand for Automotive paints continued to be severely impacted due to the continued unprecedented slowdown in Auto. Decorative growth was better. 

Despite the year being extremely challenging, due to an aggressive cost control program and judicious management of overheads the company was able to improve EBTDA by 5.3 % and EBITDA margin by 150 basis points. PBT was impacted due to lower other income and higher depreciation. In the challenging business situation, company was also able to release cash of Rs. 123 crore from working capital. 

Looking forward, the prolonged uncertainty due to COVID has created further demand destruction in the near term.

Outlook of Indian Paint Industry: 

The size of domestic paint industry is estimated at Rs.52000 crores as of Mar 2020. The good growth in infrastructure, core sector as well as automobile and real estate is likely to have a positive effect on the overall demand of paint for the industry in the long run. 

The stock trades at Rs 393.