Shares of Kansai Nerolac Paints surged more than 11% on August 2 after reporting June-quarter results. Growth numbers were strong, a positive surprise for Wall Street amid high input prices.

The stock was up 11% at Rs 484 on the BSE at 9.43 am.

The company posted a net income of Rs 1,944.6 crore for the quarter, up 47.1% from the same period last year. EBIDTA was Rs 255.6 crore, up 34.7% from last year.

Net profit was Rs 1.629 crore, up 37% year-on-year.

A drop in crude oil prices, below $100 a barrel, also boosted sentiment. Crude oil is an important raw material for the paint industry. Its prices have softened in anticipation of slower demand in some quarters.

Kansai Nerolac said good growth in infrastructure, core industries, automotive and real estate could positively impact the sector’s overall coatings demand in the long run.

ICICI Securities highlighted that despite strong revenue growth, Kansai’s three-year revenue CAGR is still lower than the industry leader due to declining decorative coatings market share.