New Delhi: Kansai Nerolac Paints on Tuesday posted modest top-line growth for the December quarter, with standalone revenue rising 3.5% year-on-year to ₹1,907.35 crore, even as profitability was weighed down by a one-off provision related to the implementation of the new labour codes.
Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at ₹247.28 crore, broadly flat from a year ago, while profit before tax (before exceptional items) declined 3.7% to ₹219.71 crore. After factoring in the exceptional charge of ₹44.72 crore, profit after tax came in at ₹131.20 crore for the quarter.
For the nine months ended December, the company reported revenue of ₹5,865.79 crore, up 1.9% year-on-year, with EBITDA at ₹771.10 crore and profit after tax (after exceptional items) at ₹498.99 crore. The exceptional item relates to an increase in gratuity and leave liabilities following the notification of the four labour codes, which the company has treated as a non-recurring charge.
Operationally, industrial coatings registered strong growth during the quarter, led by automotive, aided by the positive impact of GST rate cuts announced in late September. In decorative paints, demand remained subdued due to a shorter festive season, though the company said internal initiatives helped drive growth in projects, distribution, waterproofing and construction chemicals.
Managing director Pravin Chaudhari said raw material prices were stable but the quarter saw volatility in forex and geopolitical uncertainty. Looking ahead, the company expects growth momentum to continue in automotive and performance coatings, while recovery in decorative paints is likely to be gradual.
Kansai Nerolac, a leader in industrial paints, operates eight manufacturing units across India and a nationwide dealer network, with a portfolio spanning decorative paints and specialised industrial coatings.