BHUBANESWAR, MAY 8, 2021
Kansai Nerolac Paints Ltd. has reported an increase of 89.14 per cent in its consolidated net profit to Rs 123.62 crore for the fourth quarter ended March 31, 2021.
The company had posted a net profit of Rs 65.36 crore in the January-March quarter a year ago, Kansai Nerolac said in a BSE filing.
Its total revenue from operations was up 35.14 per cent at Rs 1,459.57 crore during the quarter under review compared to Rs 1,080.07 crore in the corresponding quarter of the previous year.
Kansai Nerolac Paints Vice Chairman and Managing Director H M Bharuka said: “The quarter saw continued strong demand for both Decorative and Industrial Paints. Both Decorative and Industrial witnessed high double-digit volume growth in the quarter.” However, this number should be read on the low base of March last year when the lockdown was announced, he added.
“The continued aggressive cost control programme along with judicious management of overheads helped the company report a strong growth in EBITDA,” Bharuka said adding that the company has already taken some price increase and further increases will be taken going forward to compensate for the inflation.
Kansai Nerolac’s total expenses were at Rs 1,302.06 crore, up 31.47 per cent, as against Rs 990.41 crore in FY 2019-20.
For the fiscal year 2020-21, Kansai Nerolac Paints’ net profit was up 1.93 per cent at Rs 525.72 crore as against Rs 515.78 crore in the previous fiscal. However, its total revenue from operations in FY21 was down 3.9 per cent at Rs 5,074.25 crore as compared to Rs 5,279.97 crore recorded in FY2019-20.
Over the outlook, Bharuka said: “Looking forward, the company is optimistic that demand would gain momentum, though in the short term the effect of the COVID second wave has impacted demand across.”