Shalimar Paints Limited, engaged in the manufacturing and marketing of decorative paints and industrial coatings, has declared Q1 FY22 revenues of Rs. 65.2 crore and a loss of Rs. 19.5 crore.

From Q3 FY21, raw material prices have seen an increasing trend, which resulted in around 7%-10% increase in overall manufacturing costs. Compared to last year, prices of key raw material have increased by more than 50%, impacting the profitability of the company.

Increase in the freight cost was largely due to disruption in transport facilities due to COVID-19 2nd wave and increase in diesel prices.

Commenting on the Results, Ashok Gupta, Managing Director, Shalimar Paints said, “It has been a challenging year and the company has witnessed a disruption that had a devastating impact on the company’s performance. Despite the initial phase of reopening of the economy, the unforeseen challenges and crisis of the 2nd wave of COVID-19 hit the pause button again."

"The company has felt the impact of increasing raw material cost over the past few quarters. Also there has been some disruption in transport facilities leading to increase in freight cost. These all factors have impacted our profitability," commented Gupta.

With the uptake in the real estate sector on the back of consumers buying houses we expect volumes to pick up in the coming quarters.

We believe we are working in the right direction for long-term sustainable growth," added Gupta.