Kansai Nerolac Paints jumped 6.05% to Rs 581 after the company's net profit rose by 64.6% to Rs 201.9 crore on a 18% increase in net revenue from operations to Rs 1473.4 crore in Q3 FY21 over Q3 FY20.
EBIDTA improved 51% to Rs 289.80 crore in Q3 December 2020 over Q3 December 2019. Profit before tax (PBT) before exceptional item in Q3 FY21 was at Rs 269.2 crore, a growth of 56.8% over Q3 FY20.
Commenting on the results, H. M. Bharuka, vice chairman and managing director, Kansai Nerolac Paints, said: "The quarter saw a strong bounce back in demand on account of the festive season. Both Decorative and Industrial witnessed high double-digit volume growth in the quarter with demand recovery across all customer segments.
The continued aggressive cost control program along with judicious management of overheads helped the company report a strong growth in EBITDA. Basic raw material prices showed an inflationary trend. Inflation is likely to continue in the near future along with continued volatility in forex rates.
Looking forward, the company is optimistic that demand would continue to gain momentum.
With respect to outlook on the Indian Paint Industry, the company said that the size of domestic paint industry is estimated at Rs. 52000 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.
Kansai Nerolac Paints is a paint manufacturing company that offers a wide spectrum of quality paints. The company has six strategically located manufacturing units all over India and a strong dealer network across the country. It manufactures a diversified range of products ranging from decorative paints coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings for most of the industries.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU