Kansai Nerolac Paints Q1 net up 32.8 pc to Rs 126.50 cr

Kansai Nerolac Paints today reported 32.89 per cent jump in standalone net profit at Rs 126.50 crore for the quarter ended June 30, 2016, on the back of a 14 per cent volume growth in the decorative paint business and reduced raw material prices.
The company had posted a net profit of Rs 95.19 crore in the April-June quarter during year-ago period.
When contacted, Kansai Nerolac Paints Managing Director H M Bharuka said, "Raw material prices had come down gradually from last year. Also decorative had a good growth and it always contributes to more profit. Decorative had an overall volume growth of 14 per cent even though the value growth was 8 per cent. We had reduced our prices by around 2.5 per cent for decorative paints."

Its net sales on standalone basis rose by 7.36 per cent to Rs 1,044.64 crore during the quarter under review, as against Rs 973.02 crore in the year-ago period.
With the prices of raw materials inching upwards now, he said the company will follow a cautious approach.
"As of now there is no reason for us to increase our prices, but certainly we are seeing the upward trend. We will have to take a call if it continues," he said.

Bharuka expects the double-digit growth for the fiscal and predicted that the second half of the fiscal could be better.

The company's green field projects in Gujarat and Punjab would be commissioned next year by September.
"The capacity at present is 3,60,000 tonne and we will increase our capacity by 15 per cent when both these plants come on stream," he said.
Shares of Kansai Nerolac Paints today settled at Rs 340.90 on BSE, up 3.44 per cent from previous close.