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Kansai Nerolac Paints (KNPL), a 74.99% subsidiary of Kansai Paint Co., Japan, consolidated sales rose 20% to Rs 1592.55 crore in Q3FY21 compared to Q3FY20.
OPM increased 430 basis points to 19.1% which saw OP rose 54% to Rs 304.44 crore.
Other income rose 35% to Rs 14.31 crore and interest cost went down from Rs 5.26 crore to Rs 5.03 crore. As depreciation grew 8% to Rs 39.92 crore, PBT went up 65% to Rs 273.8 crore. Tax provision was Rs 69.3 crore compared to Rs 50.29 crore. PAT rose 77% to Rs 204.5 crore. After considering Minority interest net profit rose 74% to Rs 203.79 crore.
9MFY'21 consolidated results
In 9MFY'21 consolidated sales fell 14% to Rs 3614.68 crore.
OPM rose 200 basis points to 18% which saw OP fell 3% to Rs 649.83 crore.
Other income rose 26% to Rs 27.28 crore and interest cost increased from Rs 14.72 crore to Rs 15.96 crore. As depreciation grew 13% to Rs 117.14 crore, PBT fell 5% to Rs 544.01 crore. Tax provisions were Rs 141.91 crore compared to Rs 123.04 crore in 9MFY20. PAT fell 11% to Rs 402.1 crore. After considering Minority interest net profit fell 11% to Rs 405.46 crore.
Commenting on the results, Mr. H. M. Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints Ltd said, "The quarter saw a strong bounce back in demand on account of the festive season. Both Decorative and Industrial witnessed high double-digit volume growth in the quarter with demand recovery across all customer segments.
The continued aggressive cost control program along with judicious management of overheads helped the company report a strong growth in EBITDA. Basic raw material prices showed an inflationary trend. Inflation is likely to continue in the near future along with continued volatility in forex rates.
Looking forward, the company is optimistic that demand would continue to gain momentum.
Outlook of Indian Paint Industry as per company
The size of domestic paint industry is estimated at Rs. 52000 crores as of March 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 581.
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