Kansai Nerolac Paints report 15.65 per cent decline in profit at Rs 121.99 crore

Kansai Nerolac Paints Monday reported a 15.65 per cent decline in its net profit at Rs 121.99 crore for the quarter ended September 30. It had posted a net profit of Rs 144.63 crore in the corresponding quarter last fiscal. However, its gross sales for the quarter under review grew by 9.86 per cent to Rs 1,414.87 crore from Rs 1,287.89 crore in the same quarter last year, the company said in a statement.

"During the quarter demand was dampened. Factors like GST rate changes in July leading to destocking by dealers, lingering monsoons over many parts of India and a delayed festival season affected demand for both decorative and industrial customers. Despite these conditions the company has had good growth," Kansai Nerolac Paints vice chairman and managing director HM Bharuka said.

"As was being seen in earlier quarters, uncertainty on the currency front and crude oil prices were more pronounced this quarter as well. This resulted in a significant increase in input costs which impacted the bottom-line," he added.

The company has announced a price increase in decorative from October 1 and has taken price increases in industrial as well, the effect of which will be seen in subsequent quarters. Industrial customers are being approached for a further price increase to compensate for high inflation.

The company expects the growth momentum to be good in decorative but subdued for industrial in the near future. "It is hoped that the rupee and crude oil will stabilise at the current levels. Any adverse change will put further pressure on margins," he added.