Kansai Nerolac Paints jumped 6.05% to Rs 581 after the company's net profit rose by 64.6% to Rs 201.9 crore on a 18% increase in net revenue from operations to Rs 1473.4 crore in Q3 FY21 over Q3 FY20.
EBIDTA improved 51% to Rs 289.80 crore in Q3 December 2020 over Q3 December 2019. Profit before tax (PBT) before exceptional item in Q3 FY21 was at Rs 269.2 crore, a growth of 56.8% over Q3 FY20.
Commenting on the results, H. M. Bharuka, vice chairman and managing director, Kansai Nerolac Paints, said: "The quarter saw a strong bounce back in demand on account of the festive season. Both Decorative and Industrial witnessed high double-digit volume growth in the quarter with demand recovery across all customer segments.
The continued aggressive cost control program along with judicious management of overheads helped the company report a strong growth in EBITDA. Basic raw material prices showed an inflationary trend. Inflation is likely to continue in the near future along with continued volatility in forex rates.
Looking forward, the company is optimistic that demand would continue to gain momentum.
With respect to outlook on the Indian Paint Industry, the company said that the size of domestic paint industry is estimated at Rs. 52000 crore as of March 2020. 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.
Kansai Nerolac Paints is a paint manufacturing company that offers a wide spectrum of quality paints. The company has six strategically located manufacturing units all over India and a strong dealer network across the country. It 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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