Kansai Nerolac net profit plunges on high base, labour code impact

Mumbai: Kansai Nerolac India’s profit for the December quarter was sharply lower compared to the previous year, weighed down by an exceptional loss and a high base in the previous year. The paint-maker had a consolidated net profit of `117.1 crore for the quarter as compared to `662.3 crore in the previous year. Total income for the period rose to `2,017.2 crore from `1,963.4 crore a year ago.

Earnings before interest, tax, depreciation and amortisation (Ebitda) for the quarter remained largely flat year-on-year at `247.3 crores, the company said in a statement. Consolidated tax expense for the quarter stood at `44.4 crore, down from `181.4 crore a year ago. The company had an exceptional loss of `44.72 crore on account of an increase in gratuity and leave liability, in line with the New Labour Code.