Kansai Nerolac Paints clocks 3.43% increase in net profit in Q1 of FY13

KOLKATA: Kansai Nerolac Paints Limited (KNPL), one of the leading paint companies in India, has clocked a 3.43% increase in net profit in the Q1 of FY13. The profit increased to Rs 63.3 crore from Rs 61.2 crore in Q1 of FY12. For the quarter, the company declared a net sales of Rs. 723.50 crores, marking a growth of 11% over the same quarter of the previous year. EBITA was Rs. 96.90 crores a growth of 6.4 % over the same quarter of the previous year.

Commenting on the company's performance, Mr. H. M. Bharuka, managing director, KNPL said, "Demand for the paint has been moderate during the quarter which is reflected in KNP numbers. The inflationary pressures witnessed in earlier quarters have reduced, however the fall in the rupee has ensured that input costs have not come down. KNPL has been able to partly pass on this increase to the market.

Going forward uncertainty in the economy, concern on the monsoon, depreciation of the rupee keeping input costs high, all make the immediate future very challenging both in terms of top-line and profitability. We will have to wait and watch as to how these factors will play out and hence the out-look for the short term remains cautious Overall, however the picture of paint demand remains very positive over the long term."

The size of domestic paint industry is estimated at Rs 29,100 crores as of Mar 2012. Good growth in infrastructure, core sector as well as automobile and real estate is likely to have a positive effect on the overall demand of paint for the industry, the company said.