Nerolac profits decline 7% on subdued demand

Nerolac Paints Ltd witnessed a 7 per cent decline in its profits at Rs 48 crore in the third quarter of financial year 2013, as against 52 crore in the year ago period. The paint major’s net sales stood at Rs 767 crore, up 15.2 per cent over the same quarter of the previous year. The decline in profits was due to low and subdued demand from the industrial markets, auto and infrastructure sector besides rise in raw material costs, said industry analysts. Commenting on the announcement, H.M. Bharuka, Managing Director, Kansai Nerolac Paints, said, “Demand for the paint has improved over the preceding quarter due to the delayed Diwali season. We are, however, yet to see strong demand recovery. Inflationary pressures have continued during the quarter. We are also yet to see recovery in the working capital cycle. While there is a renewed thrust on reforms, the base effect as well as low demand for automotives makes the outlook for Q4 tough.”