Nerolac Q3 results: Profit rises over 40% to Rs 154 crore, revenue up 5%

India's Kansai Nerolac Paints reported a bigger profit for the fourth consecutive quarter on Monday, boosted by strong demand for decorative and industrial coatings.

The company, owned by Japan's Kansai Paint Co, said consolidated net profit rose 40% year-over-year to 1.54 billion rupees ($18.5 million) in the third quarter.

Revenue from operations rose 5% to 19.19 billion rupees.

Paintmakers have benefited from growing activity in the country's real estate sector and an easing in prices of crude, a key raw material that accounts for about a third of input costs.

Kansai Nerolac said it expects rural demand to pick up going forward, although larger peer Asian Paints has warned that demand may soften in the next two quarters as buyers defer home painting plans.

Besides that, there is stiff competition from the rivals such as Berger Paints and Indigo Paints, while the likes of Pidilite Industries and J.K. Cement also preparing to enter the sector.