Shalimar Paints on Monday reported widening of its consolidated net loss to Rs 19.5 crore for June quarter 2021-22 on account of the impact of increasing raw material prices.
The company had posted a loss of Rs 10.6 crore for April-June period a year ago, Shalimar Paints said in a regulatory filing.
Revenue from operations was up 46.51 per cent at Rs 65.2 crore during the quarter under review as against Rs 44.5 crore in the year-ago period.
Shalimar Paints Managing Director Ashok Gupta said: "It has been a challenging year and the company has witnessed a disruption that had a devasting impact on the company's performance. Despite the initial phase of reopening of the economy, the unforeseen challenges & crisis of the second wave of COVID-19 hit the pause button again."
Moreover, commodity prices too witnessed an unprecedented surge, he added.
"The company has felt the impact of increasing raw material cost over the past few quarters. Also, there has been some disruption in transport facilities leading to an increase in the freight cost. These all factors have impacted our profitability," Gupta said.
According to Shalimar Paints, which is engaged in the manufacturing and marketing of decorative paints and industrial coatings, the pandemic also brought about certain fundamental shifts in the industry.
"Home improvement and focus on health & hygiene are expected to remain key growth catalysts. With the uptake in the real estate sector on the back of consumers buying houses we expect volumes to pick up in the coming quarters. We believe we are working in the right direction for long-term sustainable growth, he said
Shalimar Paints stock settled at Rs 99.30 on BSE, down 2.12 per cent from the previous close
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