MUM­BAI:

The Pak Banker - - COMPANIES/BOSS -

Kan­sai Nero­lac Paints Ltd on Mon­day re­ported 28.5% in­crease in net profit at Rs.84.4 crore for the three months to De­cem­ber on lower in­put cost. The com­pany re­ported a net profit of Rs.65.66 crore in third quar­ter of fis­cal 2015. Gross sales dur­ing De­cem­ber quar­ter stood at Rs.1,177.3 crore, up 11.3% from the year-ago pe­riod. The bot­tom line was im­pacted due to the ru­pee fall and higher prices of the in­puts, pri­mar­ily of the crude on the de­riv­a­tives mar­ket, cou­pled with higher tax outgo which rose to Rs.38.9 crore from Rs.27.1 crore, the com­pany said.

Com­ment­ing on the num­bers, man­ag­ing di­rec­tor H.M. Bharuka said the com­pany saw high dou­ble digit vol­ume and value growth in the dec­o­ra­tive seg­ment, but in­dus­trial de­mand was sub­dued and in sin­gle digit, due to the slug­gish­ness in au­to­mo­tive de­mand, es­pe­cially in two-wheel­ers. While the quar­ter saw a soft­en­ing in crude oil prices, it is not sig­nif­i­cantly re­flected in de­riv­a­tives. Volatil­ity in the ex­change rate and de­pre­ci­a­tion of the ru­pee com­pounded this prob­lem fur­ther, he said. Go­ing for­ward, the larger global sen­ti­ment and slow­down in China along with cur­rency volatil­ity is likely to im­pact con­sumer sen­ti­ment in the short to medium term. While there is vis­i­bil­ity of dou­ble digit growth in the dec­o­ra­tive seg­ment, sit­u­a­tion with re­spect to in­dus­trial in the near fu­ture re­mains a chal­lenge, he said. The size of do­mes­tic paint in­dus­try stood at Rs.35,500 crore as of March 2015. Kan­sai Nero­lac has five man­u­fac­tur­ing units.

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