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Kansai Nerolac Q1 results: Net profit falls 79% to Rs 29.64 crore

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New Delhi: Kansai Nerolac on Monday claimed a 79.42 percent decline in consolidated internet profit at Rs 29.64 crore for the 1st quarter ended June 30, on account of lower income. The company experienced posted a net profit of Rs 144.69 crore in June one fourth a year ago, Kansai Nerolac claimed in a BSE filing.

Total income declined 58.23 per cent to Rs 647.08 crore during the one fourth under review as versus Rs 1,549.18 crore in the corresponding one fourth a year ago.

“There was a unprecedented demand destruction that quarter due to typically the lock down imposed on account of Covid-19. Both sales and bottom-line was impacted as a result,” Kansai Nerolac Paints Vice-Chairman and Managing Director L M Bharuka said.

“Sales in April were a whole washout across. Sales associated with Decorative has seen rebirth in May and June with all the company registering double digit level growth in both the thirty day period,” he added.

Going ahead, the company is upbeat that demand recovery would certainly continue, Bharuka said.

“Due to frequent lockdowns and even Covid cases across, dealing with the ecosystem of the source chain is becoming a bigger difficult task. However, with multiple crops, the company is in a better placement to manage it even though it is creating a logistic difficult task,” he added.

Shares of Kansai Nerolac Oil-soaked rags on Monday closed 3 or more.21 per cent higher from Rs 446.70 each on the BSE.

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