Kansai Nerolac Paints Ltd Announces Q4 & FY Results FY 2020-2021
Kansai Nerolac Paints Limited (KNPL), one of the leading Paint companies in India, today at the Board meeting announced its audited results for the fourth quarter (Q4) and financial year 2020-21. For the quarter, the company earned Net revenue from operations of Rs.1330 Crores, a growth of 34.6% over the corresponding quarter of the previous year. For the financial year, the company earned Net Revenue from operations of Rs. 4690 Crores a de-growth of 5.1% over FY 2019-20.
EBIDTA was at Rs. 203 Crores, a growth of 59.1% over Q4 of 2019-20. PBT was at Rs. 171 Crore, a growth of 74.0% over Q4 of 2019-20.
For the financial year EBITDA was at Rs. 833 Crores, a growth of 6.6% over FY 2019-20. PBT after exceptional item, was at Rs. 715 Crores, a growth of 4.5% over FY 2019-20.
PAT for the quarter was at Rs 128 Crores, a growth of 78.8% over Q4 of 2019-20. PAT for the financial year, after the impairment in subsidiary was Rs 531 Crores, a de-growth of 0.8% over FY 2019-20.
The Board has recommended a final dividend of 400% (₹ 4.00 per share) which includes special dividend of 200% (₹ 2.00 per share) for the year. In addition, the Company had declared interim dividend of 125% (₹ 1.25 per share) paid on November 27, 2020. Accordingly, the total dividend is 525% (₹ 5.25 per share) for the financial year ended March 31, 2021 as compared to total dividend of 315% (₹ 3.15 per share) declared last year.
Commenting on the results, Mr. H. M. Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints Ltd said, “The quarter saw continued strong demand for both Decorative and Industrial Paints. Both Decorative and Industrial witnessed high double-digit volume growth in the quarter. However, this number should be read on the low base of March last year when lockdown was announced.
The continued aggressive cost control program along with judicious management of overheads helped the company report a strong growth in EBITDA. RM prices has shown a very steep to rise during the quarter, and this has resulted in a sharp increase in material costs. Full impact of this is yet to be seen due to inventory. Inflation is likely to continue along with continued volatility in forex rates and supply chain tightness.
Company has already taken some price increase. Further increases will be taken going forward to compensate for the inflation.
Looking forward, the company is optimistic that demand would gain momentum, though in the short term the effect of the COVID 2nd wave has impacted demand across.
Outlook of Indian Paint Industry:
The size of domestic paint industry is estimated at Rs. 54000 crores as of March 2021. 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.