Kansai Nerolac Paints Ltd witnessed a 4% jump in its share price during morning trade following the announcement of its Q3 FY24 results. As of 9:49 AM, the shares were trading 3.40% higher at Rs 253.49.
The paint manufacturer reported a staggering 341.4% year-on-year rise in net profit, reaching Rs 680.9 crore, compared to Rs 154.3 crore in the same quarter last year. This surge was partly driven by a one-time gain from the sale of land in Lower Parel, Mumbai.
However, the company’s revenue growth remained modest, inching up by 0.2% to Rs 1,921.9 crore from Rs 1,918.7 crore in the previous year. EBITDA (earnings before interest, tax, depreciation, and amortization) saw a decline of 3.7% to Rs 235 crore, with the EBITDA margin slipping to 12.2% from 12.7% in Q3 FY23.
Kansai Nerolac also made a provision of Rs 186.3 crore for impairment related to long-term investments, loans, receivables, and financial guarantees for its subsidiaries in Bangladesh and Sri Lanka. This move reflects the company’s cautious approach amid challenging market conditions in these regions.
Kansai Nerolac shares opened at ₹257.00, with a high of ₹260.00 and a low of ₹251.01 during the trading session. The stock’s 52-week high stands at ₹347.50, while its 52-week low is ₹230.55.
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