Net Profit in Q3 for Kansai Nerolac Paints
Kansai Nerolac Paints Limited (KNPL) reported a 44% rise in net profit at Rs 124 crore in the third quarter ended December 31, 2016, while gross sales grew by about 6% to Rs 1,246 crore.
For the first nine months, the company declared gross sales of about Rs 3,780 crore marking a growth of 6.7% over the same period of the previous year. On the other hand, net profit for the first nine months was Rs 390 crore, a growth of 39.4% over the same period of the previous year.
H M Bharuka, managing director, Kansai Nerolac Paints, said, “The company has registered close to double digit volume growth in decorative & industrial. In decorative the effect of demonetization was more pronounced in the rural markets. In case of industrial, in the two-wheelers, and three wheeler auto segments as well as in the general industrial market, the effect of demonetization was seen sharply. The industry has observed a sharp rise in prices of key raw materials as well as volatility in the exchange rates. Going forward company expects demand to revive. Continuously hardening raw material costs are expected to put pressure on the bottom-line.”
In its outlook on the Indian paint industry, the company said a 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.