Kansai Nerolac Paints Limited (KNPL), one of the leading paint companies in India, announced Q3 FY25 net revenue of Rs. 1,842.2 crores, a growth of 1.5% over the corresponding quarter of the previous year.

EBITDA was at Rs. 246.9 crores, a growth of 2.9% over the same quarter of the previous year. PBT before exceptional items was at Rs. 228.1 crores, a growth of 7.2% over the same period of the previous year. Exceptional items include net profit on sale of land at Lower Parel Mumbai Rs. 665.4 crore and a provision of Rs. 186.3 crore for impairment for its long-term investment/loan/receivables and financial guarantees in its subsidiaries in Bangladesh and Sri Lanka.

PAT after exceptional item was at Rs. 526.5 crores, a growth of 234% over the same quarter of the previous year.

For the nine months net revenue was Rs. 5,756.3 crores, growth of 0.4% over the same period of the previous year. EBITDA was at Rs. 796.3 crores, a growth of -5.6 % over the same period of the previous year. PBT before exceptional items was at Rs. 743.6 crores, a growth of -2.3 % over the same period of the previous year. PAT after exceptional item was at Rs. 897.8 crores.

Commenting on the results, Anuj Jain, Managing Director, Kansai Nerolac Paints Ltd said, “The company continued to see good growth in Paint+ products, projects, wood coatings and construction chemicals. Demand in Decorative was impacted due to higher inflation leading to lower spend on discretionary products and tight liquidity. We are seeing a gradual recovery in demand. In the Automotive sector growth was better than the market, based on several internal initiatives. Performance coatings registered strong growth due to a good order pipeline."

"The various strategic initiatives undertaken have led to a better than market performance across all businesses. EBITDA improved during the quarter over the corresponding quarter of the previous year. The improvement was driven by improvement in mix, cost optimization and control on overheads. Going forward It is expected that the recent budget announcements will help improve the consumption cycle which would positively impact demand,” added Jain.

The size of the domestic paint industry is estimated at around Rs. 75,000 crores as of March 2024. 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.