Kansai Nerolac is having a very dull hue today. The stock which had closed yesterday at Rs.431.10, opened lower today at Rs.411 and went down further to a 52-week low at Rs.403.
The stock price tanked after the company reported a big 80% (YoY) decline in net profit at Rs.25 crore on a 5% rise in revenue at Rs.1537 crore.
EBITDA was down 60% at Rs.83 crore while margins contracted by a huge 1000 bps from 15.37% to 5.4%.
Its raw material costs surged 18% and this inflationary pressure is expected to continue into Q1FY23 too as the geo-political situation will keep crude and the exchange rates volatile.