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Kansai Nerolac slides as Q4 PAT tanks 77% QoQ to Rs 123 crore

07-May-25 10:12 Hrs IST

On a standalone basis, Kansai Nerolac's net profit tumbled 76.54% to Rs 123.49 crore in Q4 FY25 as against Rs 526.46 crore in Q3 FY25. Revenue from operations fell 5.52% to Rs 1,740.43 crore in Q4 FY25 over Q3 FY25. PBT tanked 76.83% to Rs 163.83 crore in Q4 FY25 over Q3 FY25.

On a year-on-year basis, the company's standalone net profit rose 21.61% while revenue from operations advanced 4.73% in Q4 FY25. PBT jumped 14.36% YoY.

EBITDA for the fourth quarter stood at Rs 177.8 crores, reflecting a year-on-year decline of 0.7%.

Commenting on the results, Pravin Chaudhari, managing director, Kansai Nerolac Paints, said, ' During the quarter, In Decorative, the growth drivers of Paint+, Construction Chemicals, Wood finishes and Projects continued to do well. There is a gradual recovery seen in overall demand for Decorative as compared to the previous quarter, though the category continued to see tight liquidity and lower spending on discretionary items. The demand for Automotive continued to be better than the market, based on various initiatives.

Performance Coatings also continued to register strong growth on the basis of a strong order pipeline. The various initiatives launched by the company over the past 3 years continue to yield results for the company. During the quarter, raw material cost was benign, however forex continued to be volatile. Going forward, the forecast of a good monsoon should augur well for paint industry.'

On its outlook, the company stated that the size of the domestic paint industry is estimated at approximately Rs 75,000 crore as of March 2024. Robust growth in infrastructure, core sectors, automobiles, and real estate is expected to have a positive impact on long-term demand for paints across the industry.

Meanwhile, the board recommended a total dividend of Rs 3.75 per share, including a special dividend of Rs 1.25 per share'unchanged from the previous year.

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.