Kansai Nerolac Paints Q2 Net up at Rs 52.99 cr

Net Sales up by15 % and Net Profit up by 96 %

Kansai Nerolac Paints Limited, India’s second largest paint company, today announced its unaudited results for the second quarter ended September 30, 2009.

For the second quarter ended September 30, 2009:

• Net Sales grew from 390.28 crores to 448.79 crores an increase of 15%
• PAT grew from  27.07 crores to 52.99 crores an increase of 96 %

For the first half (April 2009 – September 2009):

• Net Sales grew from 744.62 crores to 861.70 crores an increase of 16 % 
• PAT increased from 57.26 crores to 95.29 crores an increase of 66 %

Highlights for Second Quarter ended September 2009:

Commenting on the results, Mr. H M Bharuka, Managing Director, Kansai Nerolac Paints Ltd. said, “There has been robust demand seen in the Decorative segment, a revival in demand seen for the Automotive Industry, especially the Passenger Car segment as well as the Consumer Goods sector. The stimulus package released by the Government has also had a favourable impact on demand.”

Further he added that, “Company had also taken lead in making its Decorative Range of products Lead Free and educating the consumer through a media campaign. Softening of commodity prices over the base period as well as internal initiatives taken by the company in back drop of the global recession in the area of cost reduction, productivity enhancement and overhead control has helped shore- up the bottom-line.”

Paint Industry Outlook:
The size of domestic paint industry is estimated at Rs 18,000 crore, of this 70% belongs to the decorative category.  Revival in auto segment and real estate sector and improvement in infrastructural project will accelerate the growth of Indian paint industry.

About Kansai Nerolac Paints Ltd:
Kansai Nerolac Paints has been at the forefront of paint manufacturing for more than 88 years pioneering a wide spectrum of quality paints. Kansai Nerolac is the second largest paint company in India and is the leader in Industrial segment, having a turnover of Rs 1664 crores. The company has four strategically located manufacturing units all over India and a strong dealer network across the country. The company manufactures a diversified range of products ranging from architectural coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings for most of the industries. Please visit www.nerolac.com.