Kansai Nerolac Paints fell 1.84% to Rs 280.50 after the company reported 27.64% decline in standalone net profit to Rs 130.16 crore as against Rs 179.89 crore posted in Q2 FY24.
Revenue from operations was at Rs 1,863.77 crore in Q2 FY25, up 0.98% as against Rs 1,845.57 crore in Q2 FY24.Profit before tax stood at Rs 192.09 crore in Q2 FY25, down by 21.23% from Rs 243.89 crore recorded in Q2 FY24.
EBIDTA for the second quarter of FY25 was at Rs 215 crore, down 20.3% over the same quarter of the previous year. Margin was affected due to change in mix and ongoing investments in capability building for the future.
On half year basis, the companys net profit tumbled 59.80% to Rs 371.26 crore on 0.06% decline in revenue from operations to 3,914.12 crore in H1 FY25 over H1 FY24.
The size of domestic paint industry is estimated at around Rs 75000 crore as of March 2024. 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, stated in companys regulatory filling.
Anuj Jain, managing director, Kansai Nerolac Paints, said, The company is seeing strong growth in the areas of Paint products, services, projects, construction chemicals and wood finishes. Overall demand in Decorative was affected due to heavy and extended monsoons. A good monsoon would augur well, and we expect demand to improve in the second half.
In Automotive growth was good on the back of several initiatives and we expect this momentum to be maintained. Performance Coating has also done well and is expected to remain strong on the back of a good order pipeline. Raw material prices initially showed an inflationary trend but as the quarter progressed, raw material prices have gradually started softening.
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Kansai Nerolac is one of the leading paint companies in India and is the leader in Industrial paints. The company has eight strategically located manufacturing units all over India and a strong dealer network across the country. The company manufactures a diversified range of products ranging from decorative paints coatings for homes, offices, hospitals, and hotels to sophisticated industrial coatings for most of the industries.
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