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Goodlass Nerolac's Q3 net profit up by 67.2%

Published on 2005-01-20. Author : SpecialChem

Mumbai -- Goodlass Nerolac Paints Limited, one of the largest paint companies in the country, has announced its unaudited financial results for the third quarter ended December 31, 2004. At the Board meeting held recently, the company declared Gross Sales of Rs. 306.07crore for the third quarter. While the profit before tax increased by 60% and stood at 41.43crore, the net profit of the company for the quarter increased by 67.2% over the corresponding period last year and stood at Rs. 28.33Cr.

Fueled by focused branding & distribution strategy and increasing investments in R&D, there has been consistent upward movement in market capitalization of the Company. This, along with the consistent increase in the stock valuations is indicative of the growth path that Goodlass Nerolac has charted out for enhanced presence in the Decorative business.

Commenting on the announcement, Mr. H. M. Bharuka, Managing Director, Goodlass Nerolac mentioned, "Our focus this quarter has been more on the profit mix and we have been able to absorb the inflation in raw material prices through reduction in overheads and operating efficiencies, to quite an extent. We also tried not to let the rising oil prices affect us adversely.

However inflation in raw material prices still remains to be a key concern area and need to be addressed at the earliest. The outlook of the industry looks positive with an expected 9-10% CAGR for the next few years. We will capitalize on the boom of housing sector on account of competitive interest rates, the tax benefits and the continuing growth in the automobile sector through better brand management. The company simultaneously aims to increase its operating efficiency to target better growth rate than the industry CAGR."

Goodlass Nerolac Paints has been at the forefront of paint manufacturing for more than 84 years pioneering a wide spectrum of quality paints. Goodlass Nerolac is the second largest paint company in India and undisputed leader in Industrial segment, having a group turnover of more than 1000 crore. The company has four strategically located manufacturing units all over India and a strong dealer network of over 11000 dealers across the country. The company manufactures a diversified range of products ranging from architectural coatings for homes, offices, hospitals, and hotels to sophisticated industrial coatings for most of the industries.

Source: Goodlass Nerolac Paints

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