Kansai Nerolac Paints Q2FY22 Results: Profit down 48% to Rs 87 cr

Kansai Nerolac Paints on Monday reported 48 per cent fall in consolidated net profit at Rs 87.28 crore for the second quarter ended September 2021.

The company had posted a net profit of Rs 167.96 crore in July-September period a year ago, Kansai Nerolac said in a BSE filing.

WATCH | Click on Zee Business Live TV Streaming Below:

However, revenue from operations was up at Rs 1,619.64 crore during the quarter under review as compared to Rs 1,383.21 crore in the year-ago period.

Total expenses were higher at Rs 1,505.80 crore as against Rs 1,159.36 crore a year ago.

"The quarter witnessed good demand in Decorative. Automotive production was hampered due to the unavailability of semiconductor chips. Inflationary trend has further intensified during the quarter and has reached unprecedented levels,? company's Vice Chairman and Managing Director H M Bharuka said.

Inflation is more severe in Industrial. Numerous force majeures across the globe have created supply chain issues, he added.

Keeping in mind the sentiments in the market, the company has been able to partly pass on the inflationary effect in both Decorative and Industrial,? Bharuka said adding sustained efforts continue to obtain further price increases to offset the impact of inflation.

Moreover, forex markets continued to be volatile during September quarter.

The company focused on selling a better product mix as well as aggressive cost controls along with judicious management of overheads, he said.
Looking forward, factors like good monsoon, buoyancy of the economy on account of containment of COVID due to the vaccination program should keep demand healthy,? Bharuka said.

Meanwhile, in a separate filing Kansai Nerolac Paints said its board in a meeting held on Monday approved payment of interim dividend of Rs 1.25 per equity share of the face value of Re 1 each for 2021-22.

Over the outlook on the Indian paint industry, the company said the size of domestic paint industry is estimated at around Rs 55,000 crore as of March 2021, and there is a good growth ahead.

The good growth in infrastructure, core sector as well as automobile and real estate is likely to have a positive effect on the overall demand of paint for the industry in the long run,? it said.

Shares of Kansai Nerolac Paints Ltd on Monday settled at Rs 544.35 apiece on BSE, down 1.29 per cent from previous close.