Kansai plant owned, Kansai Nerolac Paints, reported their Q1 FY21 results on Monday (3rd August 2020). Kansai Nerolac declared a decline of 79.4% in consolidated net profits for the quarter ended June. Net profits for the same quarter last year were Rs 144 crore as compared to Rs 29.6 crore recorded under this quarter. The numbers are below than what the street estimated. 

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Values in Crore Rupees

Kansai Nerolac Paints, which is headquartered in Mumbai, is a subsidiary of Japan’s Kansai Paint. The company is currently the second largest coating company in India and a market leader in Industrial Coatings.

Company’s top line (total revenue) has also decreased by almost 60%, from Rs 1542 crore to Rs 638 crore in just one year. You can view the company’s result here.

“There was unprecedented demand destruction this quarter due to the lockdown imposed on account of Covid-19. Both sales and bottom-line were impacted as a result. Sales in April were a complete washout across.” – Kansai Nerolac Paints Vice-Chairman and Managing Director, H M Bharuka said.

Due to increasing fears of virus and regular lockdowns, the company faced a major challenge to get customers and manage their supply chain. The last month of the quarter under review does offer some hope as decorative sales have registered double-digit growth. Can the paint industry seek a revival like the auto industry?