Kansai Nerolac's net profit falls 11.5% to Rs 168 crore in Sept quarter

Kansai Nerolac on Tuesday reported an 11.56 per cent fall in consolidated net profit at Rs 167.96 crore for the quarter ended September 30.

The company had posted a net profit of Rs 189.92 crore in the corresponding quarter a year ago, Kansai Nerolac said in a BSE filing.

Its total income during July-September 2020 grew 4.37 per cent to Rs 1,388.02 crore, compared with Rs 1,329.88 crore in the year-ago period.

"The September 2020 quarter saw a gradual return in demand as the unlock progressed. Decoratives witnessed high double-digit volume growth in the quarter.

"Industrials saw negative growth with end-user demand being impacted for a better part of the quarter on account of COVID-19 and gradually recovering only in September," Kansai Nerolac Paints Vice-Chairman and Managing Director H M Bharuka said.

He added that an aggressive cost-control programme, along with judicious management of overheads, helped the company report a growth in Ebitda (earnings before interest, taxes, depreciation and amortisation).

Bharuka said basic raw material prices were benign this quarter though rates were seen firming up gradually along with continued volatility in forex rates. Looking forward, the company is optimistic that demand recovery would continue.

Shares of Kansai Nerolac Paints on Tuesday closed 0.53 per cent higher at Rs 516.50 apiece on the BSE.