Kansai Nerolac shines on sales growth in Q1; stock gains about 7%

Employee costs and other operating expenses as a percentage of net operating income fell to 21.2% in Q1, from 22.3% a year back

After Asian Paints, Kansai Nerolac surprised the Street with better-than-expected performance in the June quarter. The automotive paint major posted top line growth of 6.6 per cent to Rs 1,456 crore while net profit was Rs 148 crore, up 6 per cent on a yearly basis.

The stock gained about 7 per cent on Monday after the announcement of Q1 results. The Sensex ended 0.5 per cent lower over its previous close. What helped the company in Q1 was operating leverage due to stronger volume and revenue growth.

Employee costs and other operating expenses as a percentage of net operating