Kansai Nerolac on Monday reported a 79.42 per cent decline in consolidated net profit at Rs 29.64 crore for the first quarter ended June 30, on account of lower income.
The company had posted a net profit of Rs 144.69 crore in June quarter a year ago, Kansai Nerolac said in a BSE filing.
Total income declined 58.23 percent to Rs 647.08 crore during the quarter under review as against Rs 1,549.18 crore in the corresponding quarter a year ago.
"There was an unprecedented demand destruction this quarter due to the lock down imposed on account of COVID -19. Both sales and bottom-line was impacted as a result," Kansai Nerolac Paints Vice-Chairman and Managing Director H M Bharuka said.
"Sales in April were a complete washout across. Sales of Decorative has seen revival in May and June with the company registering double digit volume growth in both the month," he added.
Going ahead, the company is optimistic that demand recovery would continue, Bharuka said.
"Due to frequent lockdowns and COVID cases across, managing the ecosystem of the supply chain is becoming a bigger challenge. However, with multiple plants, the company is in a better position to manage it though it is creating a logistic challenge," he added.
Shares of Kansai Nerolac Paints on Monday closed 3.21 percent higher at Rs 446.70 apiece on the BSE.
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