Kansai Nerolac Q4 Review - Savings In Other Costs Offset Gross Margin Pressure: ICICI Direct
Kansai Nerolac Paints Ltd.’s shade card. (Source: Company website)

Kansai Nerolac Q4 Review - Savings In Other Costs Offset Gross Margin Pressure: ICICI Direct

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

Kansai Nerolac Paints Ltd.’s Q4 FY21 volume growth at ~31% YoY along with cumulative price hikes of ~3% YoY was better than our estimate.

Strong topline growth at 35% was largely on account demand revival and on a favourable base.

However, gross margin was down ~410 basis points YoY due to a delay in price hikes in the industrial paint and higher raw material cost.

On the positive side, Ebitda margin was up 235 basis points YoY to 15.3%, led by saving in other costs.

Click on the attachment to read the full report:

ICICI Direct Kansai Nerolac Q4FY21 Result Update.pdf

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