Akzo Nobel India Q2 PAT jumps 35% to Rs 66 cr

The paints and coatings company's consolidated net profit soared 34.6% to Rs 66.28 crore on 4.3% decrease in net sales to Rs 606.86 crore in Q2 September 2020 over Q2 September 2019.

Consolidated profit before tax (PBT) soared 58.1% to Rs 89.04 crore in Q2 September 2020 as against Rs 56.31 crore in Q2 September 2019. Current tax expense for the quarter surged 137.40% to Rs 14.65 crore as against Rs 6.17 crore in Q2 September 2019. The Q2 result was declared at the fag end of trading hours yesterday, 9 November 2020.

Gross margin stood at Rs 295.8 crore, up from previous quarter and the same quarter last year, aided by benign raw material costs and cost re-engineering programmes. EBIT from operations grew 64% Y-o-Y (year-on-year) to Rs 85.8 crore in Q2 FY21 over Q2 FY20. EBIT margin rose by 600 bps to 14% in Q2 FY21 over Q2 FY20.

 

Commenting on the Q2 quarterly results, Rajiv Rajgopal, the managing director (MD) of Akzo Nobel India, said: "Business has seen improved recovery reaching pre COVID-19 levels in the rural and non-metro markets during the quarter. The demand in the metro cities remained muted during the quarter and has improved due to festive season and pent-up demand. Hence, we witnessed volume growth during the quarter. The revival in automotive sector benefitted our business while infrastructure, oil & gas and power segments continued to see demand challenge. Our profitability improvement this quarter is led by transformation initiatives taken last year, benign raw material costs and some rephasing of festival campaigns to next quarter."

Meanwhile the company has launched Dulux SuperClean with superior washability properties. Dulux SuperClean is a premium interior emulsion with high-bind technology providing washability from common household stains keeping the walls beautiful. It has also unveiled Dulux Promise SmartChoice, water-based emulsion for interior and exterior walls specially formulated for the Indian market. Aimed at the economy segment, Dulux Promise SmartChoice with special anti-chalking, anti-peeling properties provides better coverage and opacity.

Shares of Akzo Nobel India fell 1.43% to Rs 1,972.10 on BSE.

Akzo Nobel India manufactures and markets a wide range of coatings and paints.

Powered by Capital Market - Live News