Kansai Nerolac Paints - Q3 Results Review - Nirmal Bang

- Kansai Nerolac result below expectations

- Net sales stood at Rs 763.6 crs in Q3FY13 (15.3% up YoY and by 12.4% QoQ).

- EBITDA was up by 5.2% YoY to Rs. 84.6 crores and by 7.2% QoQ though the margin declined by 100bps YoY to 11.1% in Q3FY13 and by 50bps QoQ due to the jump in raw-material cost as % of sales. But a decline in other expenses as % of sales supported the growth in EBITDA.

- The PAT was down by 7.2% YoY to Rs. 48.9 crores in Q3FY13 and marginally up by 3.2% QoQ. The net profit was down due to the jump in depreciation cost and decline in the other income. The jump in tax rate also contributed in the fall of net profit for the company. The tax rate was 30.3% in Q3FY13 as compared to 28.2% in Q3FY12 and 28.5% in Q2FY13.

- The PAT margin stood at 6.4% in Q3FY13 as against 8%in Q3FY12 and 7% in Q2FY13.

Source : Equity Bulls

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