Kansai Nerolac Paints today reported a sharp fall in standalone net profit at Rs 116.17 crore in the January-March quarter of the last fiscal. It had posted a net profit of Rs 619.32 crore in the corresponding period of 2015-16. The company attributed sharp fall in profits in the fourth quarter of 2016-17 to exceptional gains from sale of fixed assets in the year ago period.
Its total income grew by 8.24 per cent to Rs 1,085.98 crore during the quarter under review, as against Rs 1,003.28 crore in the year-ago period, the company said in a BSE filing. In 2015-16, the company had reported exceptional gain of Rs 535.34 crore due to sale of its Perungudi fixed assets.
Kansai Nerolac Paints Managing Director H M Bharuka said: “During the quarter, Kansai Nerolac Paints continued to see strong double-digit volume and value growth in decorative (segments). However, industrial demand has been subdued and in single digit”.
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Bharuka cautioned that going forward, input costs and availability can be a concern and will put pressure on costs.
In a separate filing, the company informed that its Board has recommended a normal dividend of Rs 2.50 per share and a special dividend of Rs 0.50 per share for the fiscal. Kansai Nerolac’s shares were trading 1.44 per cent higher at Rs 398 apeice on BSE today.