Are Kansai Nerolac latest results good or bad?

Kansai Nerolac Paints has reported its financial results for the quarter ending March 2025, which indicate a notable decline across several key performance metrics. The company's Profit Before Tax (PBT) has decreased significantly, falling to Rs 106.43 crore, which is a substantial reduction compared to the average of the previous four quarters. Similarly, Profit After Tax (PAT) has also seen a decline, reaching Rs 108.46 crore, reflecting a downward trend in profitability.
Net sales for the quarter totaled Rs 1,816.65 crore, marking a decrease from the previous four-quarter average. The operating profit has reached a five-quarter low at Rs 165.72 crore, with the operating profit margin dropping to 9.12%, suggesting a reduction in operational efficiency. Additionally, earnings per share (EPS) fell to Rs 1.34, the lowest level in the last five quarters, indicating lower returns for shareholders.

The quarterly results also show a negative trend in both net sales and consolidated net profit when compared to the previous quarter, with net sales experiencing a decline of 5.48% and consolidated net profit reflecting a significant decrease of 84.07%.

Overall, the financial performance of Kansai Nerolac Paints has led to an adjustment in its evaluation, highlighting challenges in maintaining profitability and operational efficiency during this period.