Kansai Nerolac Records Annual Net Up to Rs165.50 Crore

Company Brief

Chennai, May 03, 2010

Kansai Nerolac Paints Limited, one of the leading Paint companies in India, today at the Board meeting announced its audited results for the financial year 2009-10. For FY 09-10, the company declared Net Sales of Rs. 1706.38 crores, marking a growth of 24.1 % over 08-09. The Net Profit of the company increased by 67.9 % over last year and stood at Rs. 165.50 crores. The Board has also proposed a Bonus for the shareholders at the ratio of 1:1 and a dividend of 150 %.

Highlights of the company's financial performance:

For the fourth quarter ended March 31, 2010:

Net Sales grew from Rs. 313.55 crores to Rs. 423.77 crores an increase of 35.2 %

PAT increased from Rs. 20.08 crores to Rs. 33.92 crores an increase of 68.9 %

For the Year ended March 31, 2010:

Net Sales grew from Rs. 1374.52 crores to Rs. 1706.38 crores an increase of 24.1%

PAT grew from Rs. 98.59 crores to Rs. 165.50 crores an increase of 67.9 %

Commenting on the announcement, Mr. H. M. Bharuka, Managing Director, Kansai Nerolac Paints Ltd said, "The good overall growth witnessed by the economy during the last financial year has helped KNPL achieve good growth for the quarter and the year as a whole. Both Decorative and Industrial business have done well. Decorative Paints have witnessed a good demand thanks to favorable government policies and budget. The growth in the automotive and consumer durables has helped fuel good demand for Industrial paints. We have also seen a good growth in infrastructure as well. However given the inflationary pressures in the system, gradual withdrawal of the stimulus package, increase in interest rates and hardening of raw material costs, it remains to be seen what the effect in the demand would be in the coming months. It also makes the current level of profitability unsustainable. Overall, however the picture of paint demand remains very positive over the long term. During the quarter the company has commissioned its new facility at Hosur. Further Board has announced today additional outlay of Rs 230 crores towards expansion of the Hosur facility. With this the total amount sanctioned by the Board for expansion is Rs. 409 crores."

Outlook of Indian Paint Industry:

The size of domestic paint industry is estimated at Rs 21,000 crores as of Mar 2010. The good growth in infrastructure, core sector as well as automobile and real estate is likely to have a positive effect on the overall demand of paint for the industry.

For further information, please contact:

Hanmer MS&L

Vinitha Saira

Tel: +91 44 42144891

Email: vinitha@hanmermsl.com