Kansai Nerolac Paints Posts Rs 58.86 Cr Net In Fourth Quarter

Kansai Nerolac Paints Limited (KNPL), India's leading paint company, posted 73.5 percent growth in its earnings season, 58.86 crore in quarter ended March 31, 2011, against Rs. 33.92 crore in the corresponding quarter a year ago.

During the quarter, the period under review the company's revenues rose 22.8 percent year on year to Rs 520.24. For FY11, the company reported net sales of Rs. 2138.73 crore, an increase of 25.3 percent and a net profit of Rs 205.98 crore, a growth of 24.5 percent.

HM Bharuka, Managing Director, Kansai Nerolac Paints Ltd, said: "During the quarter, the company was able to maintain growth momentum reflects the market sentiment, but during the quarter, the company also experienced a sharp escalation in raw material costs due. the high inflation in crude and its derivatives and other uncertainties prevail. Along decorative was able to pass this increase largely on costs in the marketplace. industrial enterprise of the company on a contractual basis is renegotiating contracts with its customers to offset rising costs. This led to a decline in profitability. Now the company expects demand to be moderate in the medium term, especially for automotive and other manufacturers in the industry demand for the end user will be affected due to the pressure of inflation and tighten interest rates. concern about the profitability and thus the inflation will continue. Paint demand remains positive in the long term."