Kansai Nerolac dips on weak results

The company's Q4FY19 PAT was down 12.5 per cent at Rs. 92.8 crore as against Rs. 106 crore in Q4FY18. Reacting to this, the stock dipped more than 7 per cent during intraday trade on Thursday.

Kansai Nerolac's Q4 results were hit by overall lower demand for industrial products as the company has higher exposure to industrial and auto sector. A slow down in auto sector hit the company's overall margin. Also decorative paints segment registered lower growth in Q4 as compared to its previous quarters. The company's management has also cautioned about subdued growth momentum for the near term.

For Q4FY19, the company reported net sales of Rs. 1,142 crore, a rise of 4 per cent as against Rs. 1,098 crore YoY. While for the full year the company's net sales were at Rs. 5,138.9 crore as against Rs. 4,720 crore YoY, a growth of 12.5 per cent. The company net profit was down by 12.5 per cent Rs. 92.8 crore as against Rs. 106 crore YoY.

Kansai Nerolac's board has recommended a dividend of 260 per cent or Rs. 2.60 per share for the March quarter.

On Thursday, the stock of Kansai Nerolac was trading at Rs. 417.80 per share, down by Rs. 22.80 or 5.17 per cent on BSE.