Kansai Nerolac Paints (500165) Q4 14/15 earnings summary

Executive summary

• FY15 sales and operating revenue ₹4,211.64 crore, up 12.6% YoY; PBT ₹398.90 crore, up 29.9%, and PAT ₹271.67 crore.

• Performance benefited from procurement and operating-cost controls, lower interest expense, and a ₹9.6 crore net foreign-exchange gain included in other income.

• Industrial and automotive coatings gained share; decorative growth initiatives included product launches, digital engagement, and expanded retail access through Flipkart.

Financial highlights

• Net sales, net of excise and discounts, were ₹3,532.41 crore vs ₹3,145.77 crore; other income rose to ₹21.79 crore from ₹10.33 crore.

• PBDIT excluding other income was ₹444.82 crore vs ₹362.09 crore, up 22.8%; PBT ₹398.90 crore vs ₹306.99 crore, up 29.9%.

• PAT was ₹271.67 crore vs ₹206.57 crore; basic and diluted EPS ₹5.04 vs ₹3.83, restated for the share split.

• Consolidated revenue from operations was ₹3,586.98 crore vs ₹3,193.28 crore; consolidated PAT after minority interest was ₹274.06 crore vs ₹207.96 crore.

• Operating cash flow was ₹307.00 crore vs ₹189.22 crore; cash and cash equivalents ended FY15 at ₹34.05 crore vs ₹54.88 crore.

Outlook and guidance

• Expected revival in housing, automotive, infrastructure, and smart-city investment could support demand across decorative, automotive, and performance coatings.

• Lower crude and commodity prices eased cost pressure; falling inflation was expected to support consumer spending, while a poor farm-output outlook could dampen demand.

• The FY16 budget announced an additional ₹70,000 crore of infrastructure investment over FY15, cited as a potential demand driver for paints.