Kansai Nerolac Paints Ltd Announces Q2 Results FY 2018-2019

22 Oct 2018

Commenting on the results, Mr. H. M. Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints Ltd said,“During the quarter demand was dampened. Factors like GST rate changes in July leading to destocking by dealers, lingering monsoons over many parts of India and a delayed festival season affected demand for both Decorative and Industrial customers. Despite these conditions the company has had good growth. As was being seen in earlier quarters, uncertainty on the currency front and crude oil prices was more pronounced this quarter as well. Thisresulted in significant increase in input costs which impacted the bottom-line. KNPL has announced price increase in Decorative from 1^stOctober and has taken price increases in Industrial as well, effect of which will be seen in subsequent quarters. Industrial customers are being approached for further price increase to compensate for high inflation. The company expects the growth momentum to be good in Decorative but subdued for Industrial in the near future. It is hoped that the rupee and crude oil will stabilize at the current levels. Any adverse change will put further pressure on margins. ”