Kansai Nerolac Paints (500165) Q4 97/98 earnings summary

Executive summary

• FY1997-98 gross turnover rose 6% to Rs. 489 crore; profit before tax reached Rs. 43.21 crore and profit after tax Rs. 31.21 crore.

• Results were described as satisfactory amid economy-wide demand weakness and tighter cash conditions; the Lote Parshuram plant began commercial production after year-end.

Financial highlights

• Gross turnover increased from Rs. 460 crore to Rs. 489 crore in FY1997-98, a reported 6% rise.

• Profit before tax was Rs. 43.21 crore vs Rs. 38.46 crore; profit after tax was Rs. 31.21 crore vs Rs. 24.26 crore.

• Net sales after excise duty were Rs. 403.22 crore vs Rs. 375.80 crore; other income rose to Rs. 8.82 crore from Rs. 7.10 crore.

• Proposed dividend increased to 65%, or Rs. 9.54 crore, from 60%, or Rs. 7.33 crore; paid-up share capital was Rs. 15.30 crore.

Outlook and guidance

• The Lote Parshuram plant for paints, varnishes and enamels commenced commercial production on 29 April 1998.

• R&D plans emphasized new products, import substitution and reducing imported content through product reformulation.