Kansai Nerolac Paints Limited (KNPL) on Monday reported its third quarter profit for the financial year 2023-24 at Rs 154.26 crore, up 40.3 per cent in comparison to Rs 109.92 crore during the third quarter of FY23. It posted revenue from operations at Rs 1918.71 crore, up 5 per cent as against Rs 1826.81 crore during the corresponding quarter of previous year. The company EBITDA stood at Rs 244 crore, up 24.8 per cent on-year.
For the nine month period of the financial year, net revenue was at Rs 5731.6 crore, up 4.7 per cent over the same period of the previous year. EBITDA was at Rs 843.7 crore, posting a growth of 31.5 per cent over the same period of the previous year. PAT after exceptional item was at Rs 1081.3 crore.
Anuj Jain, Managing Director, Kansai Nerolac Paints Ltd, said, “The quarter saw good demand for Industrial coatings. Decorative demand was also good as it registered double digit volume growth, driven by the festive season. Raw material prices were stable despite volatility in crude. Gross margins improved over the corresponding quarter last year. Company continues to see traction as regards to initiatives in the areas such as feet-on-street, digital, influencer outreach, new product launches, approvals, and projects.
The size of the domestic paint industry is estimated at around Rs 70000 crore as of March 2023. 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. “Going forward with the election round the corner, rural demand is expected to pick up which should support overall volume demand in the near term. Given the evolving geo-political situation, raw material prices may experience volatility,” Anuj Jain added.