Kansai Nerolac Paints reports 6.6% rise in net sales; EBITDA up 13%

Chemical Weekly: Kansai Nerolac Paints Ltd., one of India’s leading paint companies, has declared net sales of Rs. 1,456.8-crore in Q1FY20, a growth of 6.6% over the corresponding quarter of the previous year. EBIDTA was Rs. 249-crore, a growth of 13%, while lower non-opera-ting income and higher depreciation resulted in net profit growth of 5.8%.

According to Mr. H.M. Bharuka, Vice Chairman & Managing Director, the decorative paints segment has seen double-digit volume and value growth, which has helped offset the huge effect of the unprecedented slowdown in the automotive segment where the company has significant exposure. “The company has taken steps to enhance its product portfolio by entering niche markets such as adhesives, construction chemicals, coil coatings, premium wood coatings and functional powder coatings through acquisitions and internal initiatives. The effect of these efforts will be visible in the coming quarters. Our subsidiaries in Nepal and Bangladesh also have done well,” he said. For the near future, the company expects demand in the Decoratives segment to remain buoyant, but expects challenges to continue in Industrial for the near future.