India's Kansai Nerolac posts profit slide as extended monsoon hits demand

Berger Paints India

03/02/2023 10:34

BENGALURU, Feb 3 (Reuters) - India's Kansai Nerolac
Paints Ltd  KANE.NS  reported a more than 14% drop in quarterly
profit on Friday, hurt by a monsoon-induced demand slump in its
decorative unit.
    The Japanese Kansai Paint Co Ltd  4613.T -owned paint maker 
said consolidated net profit in the quarter ended Dec. 31 fell
to 1.1 billion rupees ($13.41 million), from 1.28 billion rupees
($15.60 million) a year earlier.
    Nerolac's revenue grew a modest 1% to 18.27 billion rupees
from last year.
    "Demand in decorative was impacted on account of early
Diwali, extended monsoons and higher than normal channel
stocking," Managing Director Anuj Jain said in a statement. 
    An extended monsoon season in India has stagnated
construction activities and hurt sales of paint companies as
they also battle higher commodity costs that have dented
margins.
    Nerolac's peer Asian Paints Ltd  ASPN.NS  missed
third-quarter profit view, while Berger Paints India Ltd
 BRGR.NS  also reported a drop in profit. 
    Nerolac also blamed higher prices and depreciation of the
rupee for the hit in its business.
    Shares of the company pared its roughly 2.5% gain to close
up 0.6% at 416.4 rupees after the results were released. 
($1 = 82.0350 Indian rupees)
 (Reporting by Varun Vyas; Editing by Sohini Goswami)
 ((varunvyas.hebbalalu@thomsonreuters.com;))