Kansai Nerolac Paints has reported total income of Rs.1412.70 crores during the period ended June 30, 2021 as compared to Rs.1470.50 crores during the period ended March 31, 2021.

The company reported total income Rs.647.08 crores during the period ended June 30, 2020.

The company has posted net profit of Rs.114.09 crores for the period ended June 30, 2021 as against net profit of Rs.124.28 crores for the period ended March 31, 2021.

The company posted net profit of Rs.33.47 crores for the period ended June 30, 2020.

Commenting on the results, H. M. Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints Ltd said, “The quarter began on an extremely positive note. With the announcement of the lockdown across several states towards the end of April, demand was once again affected across both Decorative and Industrial in April and May. In June there was a revival in Decorative demand once the restrictions eased. Industrial demand continued to be impacted.

Continuing the trend of earlier quarters, raw material prices further hardened resulting in extremely high inflation coupled with tightness in supplies. Forex markets continued to be volatile. The company has partly increased prices in Decorative. In Industrial, also the company has increased prices and is making sustained effort to obtain price increases to offset the impact of inflation. 

The company focused on selling a better product mix. It continued with the aggressive cost control program and judicious management of overheads. It is because of these steps that the drop in EBITDA has been contained.

Looking forward, with the vaccination program underway and a forecast of a good monsoon, demand should recover. Company would be aggressive in seeking price increases.

The size of domestic paint industry is estimated at around Rs. 55000 crores as of March 2021. The 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 in the long run.