Kansai Nerolac Paints Limited announced its financial results for the quarter ended September 30, 2024. The company reported a slight growth in revenue from operations but faced a significant decline in profits year-over-year.
Quarterly Financial Highlights (Q2FY25):
- Revenue from Operations: ₹1,951.37 crore, compared to ₹1,956.54 crore in Q2FY24, marking a slight dip of 0.3%.
- Profit Before Tax (PBT): ₹182.77 crore, down from ₹240.27 crore in the same quarter last year, reflecting a 23.9% decline.
- Profit After Tax (PAT): ₹119.76 crore, a decrease of 31.8% from ₹175.48 crore in Q2FY24.
Expenses Overview: The company’s total expenses stood at ₹1,795.30 crore for the quarter, marginally higher than ₹1,738.29 crore in the previous year. Key expenses included:
- Cost of Materials Consumed: ₹1,228.84 crore, up from ₹1,204.38 crore.
- Employee Benefits Expense: ₹124.57 crore, a notable increase from ₹108.51 crore, indicating investments in talent and workforce.
Earnings Per Share (EPS):
- Basic and diluted EPS before exceptional items were ₹1.52 for the quarter.
- EBITDA: The company’s EBITDA stood at ₹215 crore, reflecting a 20.3% decline from the same quarter last year.
- Profit After Tax (PAT): PAT was ₹130 crore, a significant drop of 27.6% compared to the previous year.
- Half-Yearly Performance: For the half-year ended September 2024, Net Revenue was flat at ₹3,914 crore. EBITDA for the period declined by 9% to ₹549 crore, while PBT before exceptional items was at ₹516 crore, a decline of 6%.
The EBITDA margin was impacted due to a change in product mix and ongoing investments in capability building for future growth.
Management Commentary: Mr. Anuj Jain, Managing Director, Kansai Nerolac Paints Ltd, commented on the results, saying, “The company is seeing strong growth in areas of Paint
Kansai Nerolac faced pressure on its profitability, despite stable revenue, due to increased material and employee costs. The results reflect the company’s challenge in managing operational expenses in a competitive market.
