Kansai Nerolac Paints rose 16.89% to Rs 510.35 after the company's consolidated net profit rose 37.01% to Rs 156.32 crore on 46.24% rise in net sales to Rs 2051.37 crore in Q1 June 2022 over Q1 June 2021.
On a consolidated basis, profit before tax (PBT) jumped 37% year-on-year to Rs 208.25 crore in Q1 June 2022.On a standalone basis, the company declared net revenue of Rs 1944.6 crore in Q1 June 2022, a growth of 47.1% over the corresponding quarter of the previous year. EBIDTA was at Rs 255.6 crore, a growth of 34.7% over the same quarter of the previous year. PAT was at Rs 162.9 crore, a growth of 37% over the same quarter of the previous year.
Total expense jumped 49.2% YoY to Rs 1688.96 crore in Q1 FY23. Cost of raw material consumed stood at Rs 1251.84 crore (up 62.2% YoY).
Anuj Jain, managing director, Kansai Nerolac Paints said, "This quarter saw a healthy demand for both Decorative and Industrial Paints. There has been a revival in demand in Industrial led by increased demand in Automotive due to the gradual easing of the chip shortages.
While inflationary trend continued, towards the end of the quarter, there has been some softening of input prices for crude-based items which is yet to be reflected in derivatives.
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Rupee depreciated sharply during the quarter. Company has taken prices increase in Decorative and Industrial during the quarter and is in continued discussion with OEM customers for further price increase.
The company focused on selling a better product mix. It continued with the aggressive cost control program and judicious management of overheads. Looking forward, with a forecast of a good monsoon, demand should remain healthy."
In its outlook, the company said: "The size of domestic paint industry is estimated at around Rs. 60000 crores as of March 2022. 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."
Kansai Nerolac Paints is one of the leading paint company in India and is the leader in Industrial paints. It 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.
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