Kansai Nerolac Q1 profit rises 5%; approves Rs 601 crore capacity expansion

Kansai Nerolac Paints reported a greater than 5% rise in consolidated internet revenue for the June quarter, aided by wholesome demand throughout ornamental and industrial paints. The corporate permitted Rs 601 crore of capability enlargement throughout three crops.

Consolidated internet revenue rose to Rs 228.41 crore from a 12 months earlier, whereas income elevated practically 10% to Rs 2,374 crore.

Demand remained wholesome in each ornamental and industrial paints regardless of geopolitical tensions and was supported by the delayed onset of the monsoon, managing director Pravin Chaudhari mentioned.

“Wanting forward, we anticipate that demand in each market segments will proceed to stay sturdy regardless of an erratic monsoon and prevailing geopolitical scenario,” he mentioned. “Moreover, Diwali being later this 12 months, ought to add a fillip to the festive demand,” he mentioned.

Chaudhari mentioned the geopolitical scenario in West Asia disrupted provide chains and sharply elevated uncooked materials costs from March. Whereas circumstances improved halfway via the June quarter, the corporate would proceed to observe the scenario carefully.

The corporate raised costs in the course of the quarter to partially offset larger uncooked materials prices. Whole bills rose greater than 10% to Rs 2,116 crore, whereas consolidated earnings earlier than curiosity, tax, depreciation and amortisation (EBITDA) elevated 7.7% to Rs 335.89 crore.

On a standalone foundation, income rose 10% to Rs 2,299 crore, whereas Ebitda elevated 8% to Rs 336 crore.The corporate introduced its outcomes after market hours on Monday. Its shares closed 3.6% larger at Rs 203.95 on the BSE.

Capability enlargement permitted

The board has permitted capability enlargement for industrial paints, powder coatings and industrial resins throughout three manufacturing amenities.

Industrial paint capability will likely be expanded on the Sayakha, Bawal and Hosur crops at an funding of Rs 412 crore.

“In view of the estimated progress in automotive paint business, capability additions are being carried out,” the corporate mentioned in an change submitting.

The corporate will make investments one other Rs 189 crore to develop powder coating and industrial resin capability on the Sayakha plant.

The tasks will likely be funded via inner accruals and are anticipated to be accomplished in phases by the tip of fiscal 2029.