The Business Bytes
Mumbai, November 6, 2024 (TBB Bureau): Kansai Nerolac Paints Limited (KNPL), one of India’s leading paint companies, has announced its unaudited results for the second quarter (Q2) of FY 2024-25. Despite facing market challenges, the company has delivered steady revenue growth and continues to focus on long-term capabilities.
For the quarter, Kansai Nerolac reported a net revenue of Rs. 1864 crore, reflecting a modest growth of 1 per cent compared to the same period last year. However, the company faced some headwinds with a 20.3 per cent decline in EBITDA, which stood at Rs. 215 crore. Profit After Tax (PAT) for the quarter was Rs. 130 crore, marking a 27.6 per cent decline over the corresponding quarter of the previous year.
The company attributed the margin impact to changes in product mix and ongoing investments aimed at strengthening its future capabilities. These investments, though critical for long-term growth, have temporarily affected short-term profitability.
For the first half of the financial year, Kansai Nerolac’s net revenue remained flat at Rs. 3914 crore, showing no significant growth compared to the same period last year. EBITDA for the half-year was Rs. 549 crore, a 9 per cent decline year-over-year, while Profit Before Tax (PBT) before exceptional items stood at Rs. 516 crore, a 6 per cent decline.
Anuj Jain, Managing Director of Kansai Nerolac Paints Ltd, commented on the results, stating, “While demand in the Decorative segment was impacted by the extended monsoon season, we are seeing strong growth in our Paint+ products, services, projects, construction chemicals, and wood finishes. A good monsoon would be favorable for a stronger demand recovery in the second half of the year. The Automotive segment has also seen good growth, and we are optimistic about maintaining this momentum. Performance Coatings continue to perform well, backed by a strong order pipeline. Raw material prices, which initially showed an inflationary trend, have started softening as the quarter progressed, providing some relief.”
Looking ahead, Kansai Nerolac remains committed to its strategic investments and product innovations, positioning itself for sustainable growth across all its segments. The company expects demand to pick up in the latter half of the year, driven by improved market conditions and favorable trends in raw material costs.
