Kansai Nerolac Paints Limited announced its audited financial results for the first quarter of FY 2019-20, reporting net sales of Rs. 1456.8 crore, reflecting a growth of 6.6% compared to the same quarter last year. EBITDA stood at Rs. 249 crore, marking a 13% increase, while net profit grew by 5.8%.
Commenting on the performance, H. M. Bharuka said the decorative paints segment registered strong double-digit growth in both volume and value, helping offset the slowdown in the automotive sector, where the company has significant exposure.
The company also highlighted its expansion into niche categories such as adhesives, construction chemicals, coil coatings, premium wood coatings, and functional powder coatings through acquisitions and internal initiatives. Its subsidiaries in Nepal and Bangladesh also performed well during the quarter.
Kansai Nerolac stated that stable input costs and strict cost control measures supported profitability, though volatility in crude oil prices and exchange rates continued to impact raw material costs. The company remains optimistic about growth in the decorative segment but expects continued challenges in the industrial paints segment in the near term.
The Indian paint industry was estimated at around Rs. 50,000 crore as of March 2019, with infrastructure, automobile, and real estate growth expected to drive future demand.
