The Japanese Kansai Paint Co Ltd-owned paint maker said consolidated net profit in the quarter ended Dec. 31 fell to 1.1 billion rupees ($13.41 million), from 1.28 billion rupees ($15.60 million) a year earlier.

Nerolac's revenue grew a modest 1% to 18.27 billion rupees from last year.

"Demand in decorative was impacted on account of early Diwali, extended monsoons and higher than normal channel stocking," Managing Director Anuj Jain said in a statement.

An extended monsoon season in India has stagnated construction activities and hurt sales of paint companies as they also battle higher commodity costs that have dented margins.

Nerolac's peer Asian Paints Ltd missed third-quarter profit view, while Berger Paints India Ltd also reported a drop in profit.

Nerolac also blamed higher prices and depreciation of the rupee for the hit in its business.

Shares of the company pared its roughly 2.5% gain to close up 0.6% at 416.4 rupees after the results were released.

($1 = 82.0350 Indian rupees)

(Reporting by Varun Vyas; Editing by Sohini Goswami)