Kansai Nerolac Paints Limited (KNPL),one of the leading Paint companies in India on Friday registered 17.9 per cent growth in net profit at Rs 61.23 crore in Q1 FY 12. For the quarter,the company declared net sales of Rs 651.66 crore,marking a growth of 24.1 per cent over the same quarter of the previous year,a company statement said. While there has been a good demand for decorative products,we have seen moderation of demand in automobiles,white goods and electrical appliances during the quarter. The inflationary pressures witnessed in earlier quarters continued. KNPL has been able to partly pass on this increase to the market, Kansai Nerolac Paints Managing Director,H M Bharuka said. Going forward,the high interest rates coupled with uncertainty in the global economy and high input prices,make the immediate future very challenging,both,in terms of top-line and profitability, he said. We will have to wait and watch as to how these factors will play out and hence the out-look for the short term remains cautious overall. However the picture of paint demand remains very positive over the long term, Bharuka added. The size of domestic paint industry is estimated to be at Rs 24,000 crores as of March 2011. The good growth in infrastructure,core sector as well as automobile and real estate is likely to have a positive effect on the overall demand of paint for the industry,he said.
