- ALSO READ
Kansai Nerolac Paints Ltd on Tuesday reported a decline of 84.49 per cent in its consolidated net profit at Rs 19.17 crore for the fourth quarter ended March.
The company had posted a net profit of Rs 123.62 crore in the January-March quarter a year ago, Kansai Nerolac said in a BSE filing.
However, its revenue from operations was up 5.27 per cent at Rs 1,536.60 crore during the quarter under review as compared to Rs 1,459.57 crore in the corresponding quarter of the previous year.
Kansai Nerolac's total expenses were at Rs 1,503.54 crore, up 15.47 per cent in Q4/FY 2021-22, as against Rs 1,302.06 crore in the year-ago period.
Kansai Nerolac Paints Managing Director Anuj Jain said, "The quarter witnessed impact in terms of demand for decorative on account of the steep price increase towards end of Q3 FY 21-22. In automotive, passenger vehicles demand was good though impacted because of supply side constraints.
On raw material costs, the quarter continued to witness inflationary pressures along with volatility in crude and exchange rates on account of tough geopolitical situation globally.
"Overall demand situation is expected to remain healthy, and company remains positive and well poised to do better. It is expected that price increases taken in FY 21-22 will accrue in the coming year," said Jain adding that "company will strive for more price increases in industrial.
For the fiscal year ended March 31, 2022, the company's consolidated net profit was down 34.72 per cent at Rs 343.15 crore. It had reported a net profit of Rs 525.72 crore in 2020-21.
Its revenue from operation was at Rs 6,369.35 crore in 2021-22. This was 25.52 per cent higher than Rs 5,074.25 crore in the year-ago period.
The board of Kansai Nerolac has recommended a final dividend of Re 1 per share. In addition, the company had declared an interim dividend of Rs 1.25 per share paid on November 22, 2021.
"Accordingly, the total dividend is 225 per cent (Rs 2.25 per share) for the financial year ended March 31, 2022, as compared to total dividend of 525 per cent (Rs 5.25 per share) including special dividend of 200 per cent declared last year," it said.
Over the outlook of Indian paint industry, the company said the size of domestic paint industry is estimated at around Rs 60,000 crore 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, it added.
Shares of Kansai Nerolac Paints Ltd on Tuesday settled at Rs 431.10 on BSE, down 1.77 per cent from the previous close.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Subscribe to Business Standard Premium
Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!
First Published: Tue, May 10 2022. 20:42 IST