Kansai Nerolac Paints Ltd share Price Today

Kansai Nerolac (KNL) is a global leader in industrial coatings (auto). However, in the last 10 years, it has increased its decorative paint mix to ~55% of its topline. Currently, KNL is the third largest decorative paint player in India.

• Strong distribution network of ~28,000 dealers across the country
• In the last three years, KNL has increased its total paint manufacturing capacity from 5.47 lakh KL to 6.06 lakh KL at a cumulative investment of ~₹ 543 crore

Revenue growth supported by better demand across segments.

• Revenue grew ~13% YoY to ~₹ 1734 crore on the back of improved demand and new product launches across decorative & industrial paints
• Gross margin improved ~397 bps YoY supported by lower raw material prices and price hikes in industrial paints. As a result, the EBITDA margin improved 424 bps YoY) to 9.7%. This is still lower than its pre-Covid range of 12-13% due to higher advertisement expenditure
• On a favourable base, PAT grew ~5x YoY to ₹ 96 crore tracking EBITDA margin expansion

Furniture-Furnishing-Paints company Kansai Nerolac Paints announced Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

• Net revenue: Rs 1,662 crore, a growth of 3.5% over the corresponding quarter of the previous year.
• EBIDTA: Rs 179 crore, a growth of 17.5% over the same quarter of the previous year.
• PBT (Profit Before Tax) before exceptional items: Rs 162 crore, a growth of 32.7% over the same quarter of the previous year.

FY24 Financial Highlights:

• Net revenue: Rs 7,393 crore, a growth of 4.4% over the same period of the previous year.
• EBIDTA: Rs 1,023 crore, a growth of 28.8% over the same period of the previous year.
• PBT before exceptional items: Rs 924 crore, a growth of 42% over the same period of the previous year.
• Total dividend recommended: 375% (Rs 3.75 per share), including a special dividend of 125% (Rs 1.25 per share), for the financial year ended March 31, 2024, compared to a total dividend of 270% (Rs 2.7 per share) last year.

Commenting on the results, Anuj Jain, Managing Director, Kansai Nerolac Paints said, “The demand for Industrial coatings though good, moderated from previous quarter. Decorative once again recorded double digit volume growth.

Raw material prices were stable. Gross margins improved over the corresponding quarter last year due to the benign raw material cost.

The initiatives in the areas such as feet-on-street, digital, influencer outreach, new product launches, approvals, and projects are yielding results for the company. Going forward, the forecast of a good monsoon should augur well for paint industry.”

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