Kansai Nerolac Q1 net up 3.43% at Rs 63.3 crore

Paint manufacturer Kansai Nerolac Paints (KNPL) today posted a 3.43% growth in net profit at Rs 63.3 crore for the quarter ended June 30 as against Rs 61.2 crore in the year-ago period.

The company's total revenues for the period grew 10.96% growth to Rs 723.5 crore from Rs 652 crore in the corresponding quarter last year.

"Demand for the paint has been moderate during the quarter which is reflected in the numbers. The inflationary pressures witnessed in earlier quarters have reduced, however, the fall in the rupee has ensured that input costs have not come down," Kansai Nerolac Managing Director HM Bharuka said in a statement.

He said the company has been able to partly pass on this increase to the market.

"Going forward uncertainty in the economy, concern on the monsoon, depreciation of the rupee keeping input costs high, all make the immediate future very challenging both in terms of top-line and profitability," he said.

Though positive about the growth prospects of the domestic paint industry which stands at Rs 29,100 crore, Bharuka said,the company will adopt a wait and watch strategy.

"We will have to wait and watch as to how the challenging factors will play out and hence the outlook for the short term remains cautious. Overall, however, the picture of paint demand remains very positive in the long term," he added.