Kansai Nerolac Paints' Net Profit Down 27.6% YoY In Q2FY25
For the quarter, the company declared net revenue of Rs 1,864 Crore, a growth of 1 per cent over the corresponding quarter of the previous year
Marking a de-growth in the second quarter of the current financial year (Q2FY25), Kansai Nerolac Paints or KNPL has registered a 27.64 per cent year-on-year (YoY) dip in its net profit in Q2 FY25. As per the company’s unaudited standalone financial results, its net profit decreased to Rs 130.16 crore in Q2FY25 compared to Rs 179.89 crore in the same quarter a year ago.
For the quarter, the company declared net revenue of Rs 1,864 Crore, a growth of 1 per cent over the corresponding quarter of the previous year. The net revenue in Q2 FY24 was Rs 1,845.57 crore. The earnings before interest, tax, depreciation and amortisation (EBITDA) was at Rs 215 crore, a de-growth of 20.3 per cent over the same quarter of the previous financial year.
“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,” said Anuj Jain, Managing Director, Kansai Nerolac Paints.
The total expenses of the company also increased from Rs 1,624.04 crore in Q2 FY24 to Rs 1,698.56 crore in Q2 FY25. The total income also witnessed growth as it increased to Rs 1,890.65 crore in the recently concluded quarter compared to Rs 1,867.93 crore in Q2 FY24.
As far as the financial performance in the first half of the current fiscal (H1FY25) is concerned, the net revenue of the company was Rs 3,914.12 crore in H1 FY25, a marginal YoY dip from Rs 3,916.74 crore. EBITDA was at Rs 549 Crore, a de-growth of 9 per cent over the same period of the previous year. The profit before tax (PBT) before exceptional items was at Rs 516 Crore, a dip of 6 per cent over the same period of the previous year.
On the outlook front, the size of the domestic paint industry is estimated at around Rs 75,000 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.
