The company has 4 manufacturing facilities - at Lote in Maharashtra, Bawal in Haryana, Jainpur in U.P. and the latest state-of-the-art plant at Hosur in Tamil Nadu. The geographical set up of the plants has been advantageous in providing high service levels and supply chain efficiency. Recently the company inaugurated its new emulsion plant at Jainpur and new polyester resin plant at Lote.

The company has over the years developed a variety of products in order to meet customer demand in the Decorative, Automotive, Auto Refinish, Performance Coating and Powder Coating segments of the market.

March 2017 quarter results

In quarter ended March 2017, sales grew 7% to Rs 1062.87 crore.

Volume grew at higher double digits in Q4. growth led by decorative segment.

OPM jumped 190 basis points to 15.4% which saw OP grow 22% to Rs 164.12 crore.

Other income jumped 142% to Rs 23.11 crore and interest cost was NIL.

As depreciation grew 3% to Rs 17.51 crore, PBT grew 33% to Rs 169.72 crore.

EO gain was nil against a gain of Rs 535.345 crore. Thus PBT after EO fell 74% to Rs 169.72 crore.

After providing for taxation (up 24% to Rs 53.55 crore), PAT fell 81% to Rs 116.17 crore.

FY 2017 results

In FY 2017, sales grew 7% to Rs 4531.05 crore. OPM jumped 250 basis points to 16.1% which saw OP grow 36% to Rs 730.69 crore.

Other income jumped 259% to Rs 98.22 crore and interest cost was NIL.

As depreciation grew 3% to Rs 69.49 crore, PBT grew 41% to Rs 759.42 crore.

EO gain was nil against a gain of Rs 535.345 crore. Thus PBT after EO fell 29% to Rs 759.42 crore.

During March 2016 quarter the company had sold its land Perungudi fixed assets for a consideration of Rs 537.86 crore. The profit of Rs 535.34 crore is shown as EO items.

After providing for taxation (up 44% to Rs 253.48 crore), PAT fell 44% to Rs 505.94 crore.

Consolidated FY 2017 results

In FY 2017, consolidated sales grew 7% to Rs 4584.53 crore. PBT grew 41% to Rs 765.31 crore.

EO gain was nil against a gain of Rs 535.345 crore. Thus PBT after EO fell 29% to Rs 765.31 crore.

After minority interest consolidated net profit fell 44% to Rs 508.84 crore.

Enjoys strong parent support

The continued technology focus from the parent Kansai Paint Co. Ltd. (which holds 69.27% stake in the company), Japan has helped bring the latest technology products. Based on the excellent track record and new technology offerings, Multiple New OEM Business have been awarded for future business prospects. In addition the company's state-of-the-art Hosur plant is now fully operational and has been approved as a factory of supply by Industrial customers as well.

The company is a leader in Industrial Paints

Kansai Nerolac is the leader in the Industrial Coatings market space and it continues to increase its market share in this space. It has extended its close interaction with customers to the areas of Performance coatings which has helped it increase its market share. The company now serves a vast array of OEM industries with a variety of products.

Complete system capability with advanced technological products introduced over the years has been instrumental in sustaining the leadership for industrial business segment. KNPL has always launched products for customers across various market segments which are innovative and technologically superior.

The industrial team has undertaken the initiative of "Train the customers". The team imparted training, gave colour presentations and also suggested many improvement areas related to painting and safety to Multiple OEMs and Auto ancillaries.

Made inroads in Railways business for coaches and wagons

The company made inroads in Railways business for coaches and wagons. In Performance Coatings Segment, New business and new products were the focus. The company continues to focus on gaining approvals from large buyers of paint. New products like Direct to metal coatings for Industrial application have been introduced. The Company launched Floor Coatings Products during the year with favourable response.

Valuation

The share price trades at Rs 394.