The paint maker's consolidated net profit dropped 23.48% to Rs 65.36 crore on a 11.20% fall in net sales to Rs 1,072.72 crore in Q4 March 2020 over Q4 March 2019.
Consolidated profit before tax (PBT) tumbled 29.91% to Rs 93.50 crore in Q4 March 2020 as against Rs 133.41 crore in Q4 March 2019. Total tax expenses for Q4 March 2020 slumped 41.37% to Rs 28.14 crore as compared to Rs 48 crore incurred in Q4 March 2019. The result was declared during trading hours today, 6 May 2020.
Commenting on the results, H. M. Bharuka, vice chairman and managing director, Kansai Nerolac Paints said, "Sales and bottomline was impacted this quarter due to the outbreak of COVID 19. Demand for automotive paints continued to be severely impacted due to the continued unprecedented slowdown in auto. Decorative growth was better. PBT was impacted due to lower other income and higher depreciation. Looking forward, the prolonged uncertainty due to COVID-19 has created further demand destruction in the near term."
In its outlook, the company said that the size of domestic paint industry is estimated at Rs 52,000 crore as of March 2020. 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.
The board recommended a dividend of Rs 3.15 per equity share for the financial year ended March 2020.
Shares of Kansai Nerolac Paints rose 0.29% to end at Rs 393.15 on BSE. The stock traded in the range of Rs 381.75 to Rs 405 so far.
Kansai Nerolac Paints is a paint company which offers a range of products, including decorative, automotive coatings and performance coatings.
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