Shares of Kansai Nerolac Paints Limited dropped over 2% after the company announced its second-quarter financial results for FY25, highlighting a significant drop in profits. As of 10:23 am, the stock was trading 2.07% lower at ₹279.75 on the NSE, reflecting investor concerns over the earnings performance.
For the quarter ended September 30, 2024, Kansai Nerolac reported a slight dip in revenue from operations, which stood at ₹1,951.37 crore, down marginally from ₹1,956.54 crore in Q2FY24. However, the company faced a notable decline in profitability, with profit before tax (PBT) at ₹182.77 crore, a 23.9% decrease from ₹240.27 crore in the same period last year. Profit after tax (PAT) fell 31.8% year-over-year to ₹119.76 crore, down from ₹175.48 crore.
Key expenses for the quarter included a rise in the cost of materials consumed, reaching ₹1,228.84 crore, and an increase in employee benefits expense to ₹124.57 crore. The company’s EBITDA also declined, standing at ₹215 crore, a 20.3% drop from the previous year.
For the half-year ended September 2024, Kansai Nerolac reported flat net revenue at ₹3,914 crore, while EBITDA declined by 9% to ₹549 crore. The company’s EBITDA margin was affected by changes in the product mix and ongoing investments in capability building.
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