Demand worries, higher input costs may derail Kansai Nerolac's Q1 show

While the first three weeks of April saw robust demand in what is considered a seasonally strong period, lockdown in multiple states has seen offtake collapse

After a strong start to the June quarter, Kansai Nerolac Paints is facing a double whammy in the form of weak demand and higher commodity costs. While the first three weeks of April saw robust demand in what is considered a seasonally strong period, the lockdown in multiple states has led to a collapse in demand. About 70-90 per cent of depots and distributors are shut while the rest are open for a limited period.

The company is facing demand challenges in both its key segments of decorative paints and the industrial (auto) segment. While the semi-urban and rural segments