The Board has recommended a total dividend of 375 per cent (Rs 3.75 per share), including a special dividend of 125 per cent (Rs 1.25 per share) for FY25
Kansai Nerolac Paints’ or KNPL consolidated performance took a hit as the net profit attributable to the owners of the company marked a 6.5 per cent year-on-year (YoY) decline in the fourth quarter of fiscal year 2025 (Q4FY25). The net profit came down to Rs 108.46 crore in Q4FY25 from Rs 116.03 crore in Q4FY24.
The financial results of the company revealed an uptick in its revenue from operations, which rose to Rs 1,816.65 crore in Q4FY25 from Rs 1,769 crore in Q4FY25. In an exchange filing, the company mentioned that its net profit dipped marginally to Rs 1,142.95 crore in FY25 from Rs 1,185.44 crore in FY24. The total expenses rose to Rs 1,710.22 crore in the recently concluded quarter.
The earnings before interest, tax, depreciation and amortisation (EBIDTA) was at Rs 177.8 crore, a de-growth of 0.7 per cent over the same quarter of the previous year. The Board has recommended a total dividend of 375 per cent (Rs 3.75 per share), including a special dividend of 125 per cent (Rs 1.25 per share) for the financial year ended 31 March 2025, as compared to a total dividend of 375 per cent (Rs 3.75 per share) last year.
“During the quarter, In decorative, the growth drivers of paint+, construction chemicals, wood finishes and projects continued to do well. There is a gradual recovery seen in overall demand for decorative as compared to the previous quarter, though the category continued to see tight liquidity and lower spending on discretionary items.,” stated Pravin Chaudhari, Managing Director, Kansai Nerolac Paints.
In the quarter, the lower crude prices were offset by Rs depreciation, leading to no benefit to profitability. A seasonally stronger mix of industrial also impacted margins, as per the review by Asit C Mehta Investment Interrmediates (ACMIIL) institutional research.
“We reduce our revenue growth assumption slightly to factor in a slower pace of recovery in H1FY26E, and reduce the consolidated margin assumption to account for the continued subsidiary underperformance,” stated (ACMIIL) institutional research.
As far as the outlook of Indian paint industry is concerned, the company stated that the size of domestic paint industry is estimated at around Rs 75,000 crore 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.
