Covid-19 is keeping painters away, and things could get worse for paint companies in the next two quarters. Some of what lies ahead is already visible in Kansai Nerolac Paints Ltd’s fourth-quarter results.
Q4 figures were paler than usual due to falling volumes in its industrial and decorative paints divisions. While analysts were expecting a 10% fall in revenue, the company’s Q4 results show 14% year-on-year decline.
As paints are discretionary items, consumers are likely to delay renovating homes. With the lack of manpower and social distancing norms, painting activity may resume only in the second half of FY21.
Further, demand in its industrials division, which includes autos, may see a further deceleration in the next one-two quarters.