Kansai Nerolac Q2 net up 42% to Rs 139 cr

\ Mumbai, Oct 28 (PTI) Kansai Nerolac Paints today reported\a 41.77 per cent rise in standalone net profit to Rs 139.31\crore for the second quarter ended September 30, largely on\the back of reduction in raw material prices.\ \\"There was a reduction in raw material price, which was\mainly contributed by the contract which we had made earlier\with vendors and we got the inventory benefit,\\" Kansai Nerolac\Paints Managing Director H M Bharuka told PTI.\ \\"Lower commodity prices and a relatively stable forex\situation have ensured that inflation remains benign, which\has helped improve profitability,\\" Bharuka added.\ The company had posted a net profit of Rs 98.26 crore\for the same quarter last fiscal.\ Standalone total income from operations rose to Rs\1,133.75 crore during the quarter under review from Rs\1,075.47 crore in the same period last fiscal.\ \\"In the Next two quarters, definitely cost would be higher\than what was last year. Point to point, there is an inflation\of about 4-4.5 per cent. So, we will have to do some cost\reduction or value engineering or we will have to go for a\price increase. But, it is too early to say as there is too\much of volatility,\\" Bharuka said.\ The demand for decorative paint has been good during the\festive season and the company expects post-Diwali demand to\be better.\ \\"Demand is good. Decorative business will continue to do\well and even auto will do well, except that we are worried\about the GST rate and customer may postpone if the it is\lower than the existing rate but that will happen only in\case of auto,\\" he said, adding that for the year the company\is expecting a double digit volume growth. PTI DS RSY\BAL\SDM\