Kansai Nerolac Paints Limited today announced its audited financial results for the year ended March 31, 2009.
The Net Sales for the year ended March 31, 2009 registered at Rs. 1374.52 crores as compared to Rs.1319.75 crores in the previous year, an increase of 4.25 per cent over the previous year. The Net Profits of the company for the year ended March 31, 2009 went down to Rs.98.59 crores from Rs.119.79 crores in the previous year, a decrease of 17.7 per cent over the previous year.
For the quarter ended March 31, 2009, Net Sales is Rs. 313.55 crores vis-a-vis Rs.308.41 crores; registering a growth of 1.7 per cent. Profit after tax is at Rs.20.08 crores as against Rs.23.96 crores; reflecting a degrowth of 16.2 per cent.
Commenting on the results of the company, Mr. H M Bharuka, Managing Director, Kansai Nerolac Paints Ltd said that, “FY 2008-09 was an extremely challenging year, with slow-down witnessed across various sectors and widely fluctuating commodity prices. Against this back-drop, company has performed reasonably well in FY 2008-2009 primarily driven by good growth in Decorative. Various initiatives in the areas of Inventory Management, Material Costs, Working Capital Management and Overhead control have helped release 100 crores cash in the system Going forward company expects the Decorative business to continue to do well. Given the state of Industrial demand, it will take a while before the outlook for Industrial changes.”
Paint Industry Outlook:
The outlook for the future continues to be mixed and cloudy. Paint industry has recorded a growth of around 10% in FY 2008-2009 and is expected to grow by 8% in FY 2009-2010. The decorative segment has outpaced industrial segment in the annual growth rate. However the Industrial segment has huge potential to grow, as automobile industry business is also improving. The players with aggressive marketing strategies and comprehensive product portfolio will grow at a faster rate.
About Kansai Nerolac Paints Ltd:
Kansai Nerolac Paints has been at the forefront of paint manufacturing for more than 88 years pioneering a wide spectrum of quality paints. Kansai Nerolac is the second largest paint company in India and is the leader in Industrial segment, having a turnover of Rs 1664 crores. The company has four strategically located manufacturing units all over India and a strong dealer network across the country. The company manufactures a diversified range of products ranging from architectural coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings for most of the industries. Please visit www.nerolac.com.
