Kansai Nerolac Paints Q1 consolidated net moves down by 77.08 pc to Rs 33.47 cr
Mumbai/UNI: Kansai Nerolac Paints has posted a decline of 77.08 per cent in its net profit for the quarter ended June 30, 2020 at Rs 33.47 crore as against Rs 146.02 crore for the quarter ended June 30, 2019.
Total income for the quarter under review decline by 58.23 per cent to Rs 647.08 crore during the as compared to Rs 1549.18 crore for the quarter ended June 30, 2019.
Commenting on the results, Mr H M Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints Ltd said, "There was an unprecedented demand destruction this quarter due to the lock down imposed on account of COVID -19.
Both sales and bottom-line was impacted as a result. Sales in April were a complete washout across. Sales of Decorative has seen revival in May and June with the company registering double digit volume growth in both the months. Industrial sales continued to be impacted in both May and June due to the slow recovery of the end customers.
Despite the severe drop in topline, an aggressive cost control program and judicious management of overheads helped the company report profit. EBITDA drop was also contained to just 350 basis points. Basic raw material prices were benign this quarter though there was volatility in forex rates.
Looking forward, the company is optimistic that demand recovery would continue. Due to frequent lockdowns and COVID cases across, managing the eco system of supply chain is becoming a bigger challenge. However, with multiple plants the company is in a better position to manage it though it is creating a logistic challenge".