Kansai Nerolac Paints Limited , one of India's leading paint manufacturers, has released its financial results for the second quarter, revealing a mixed performance amidst challenging market conditions.

Revenue and Profit

For the quarter ended September 30, Kansai Nerolac reported a net revenue of ₹1,871.02 crore, representing a modest growth of 0.4% compared to the same quarter in the previous year. However, the company experienced a slight decline in profitability, with profit before tax (PBT) decreasing by 4.0% to ₹184.39 crore.

Segment Performance

The company witnessed varied performance across its business segments:

• Automotive Segment: Sustained growth momentum.
• Performance Coating: Showed good growth, with positive outlook due to strong order flows.
• Decorative Segment: Overall demand was affected by heavy and extended monsoons.

Half-Year Performance

For the first half of the fiscal year, Kansai Nerolac's results were as follows:

Market Conditions and Outlook

Pravin Chaudhari, Managing Director of Kansai Nerolac Paints Ltd, commented on the results, highlighting several factors influencing the company's performance:

• Automotive and Performance Coatings segments may benefit from reduced GST rates for auto majors and OEMs, as well as the infrastructure push.
• The decorative segment faced challenges due to extended monsoons.
• Raw material prices remained benign, but forex markets experienced volatility.
• Geopolitical uncertainties continue to impact the business environment.

Looking ahead, the company anticipates momentum in both Automotive and Performance Coatings segments, with a gradual recovery expected in the Decorative segment.

Industry Outlook

The domestic paint industry in India is estimated to be worth around ₹77,500 crore as of March. The sector is poised for growth, driven by developments in infrastructure, core sectors, automobile industry, and real estate.

Kansai Nerolac Paints continues to maintain a strong presence in the Indian market with nine strategically located manufacturing units and a robust dealer network across the country. The company's diverse product range spans from decorative paints for homes and offices to industrial coatings, positioning it to capitalize on the expected industry growth.

Kansai Nerolac Paints , a leading paint manufacturer in India, has announced the initiation of its billing process from Chennai for industrial operations. This strategic move marks an expansion in the company's industrial business activities and enhances its operational footprint in the southern region of India.

Operational Expansion

The company has officially started billing from an additional location in Chennai, specifically for its industrial business segment. This development is part of Kansai Nerolac's ongoing efforts to streamline its operations and improve its service delivery to industrial clients.

Nationwide Presence

With the addition of this new billing center in Chennai, Kansai Nerolac Paints has significantly expanded its nationwide presence. The company now boasts an impressive network of sales depots across the country, as detailed in the following table:

This extensive network of sales depots underscores Kansai Nerolac's commitment to maintaining a strong presence across India and ensuring efficient service delivery to its diverse customer base.

Strategic Implications

The establishment of a new billing center in Chennai for industrial operations could potentially lead to:

1. Improved operational efficiency in the southern region
2. Enhanced service delivery to industrial clients
3. Stronger market presence in the industrial paints segment
4. Potential for increased market share in the region

Company's Commitment to Growth

This latest development aligns with Kansai Nerolac's ongoing strategy to strengthen its position in the Indian paint market. By expanding its operational capabilities, the company demonstrates its commitment to meeting the evolving needs of its industrial customers and adapting to market demands.

As Kansai Nerolac Paints continues to evolve its operational structure, investors and industry observers will be keen to see how this new billing center impacts the company's performance in the industrial segment and its overall market position.