Kansai Nerolac

Kansai Nerolac posted a robust 41% (YoY) jump in net profit at Rs.73 crore purely on the back of efficient operations. Net sales rose 17% at Rs.915 crore. The market was more enthused with the jump in EBITDA margin, up from 11.74% to 13.15%. Operating costs during the quarter were up 14%. Operating profit was up 31% at Rs.120 crore while margins expanded 140 bps at 13.2%.

The company ended H1FY15 with a net profit at Rs.146 crore, up 29%. With the festive season on, it is usually Q2 and Q3 which are the best. Thus the same enthusing performance is expected to continue into next quarter also.  The company uses a derivative of crude as one of its main raw materials and with crude prices down, the coming quarter is sure to see benefits from this