Akzo Nobel India Q1 Results: Profit Rises 43% On Improved Gross Margin
Akzo Nobel India Ltd.'s consolidated net profit surged 43% in the April–June quarter due to higher revenue from operations and sequential softening in raw material costs.
Profit of the Dulux-paintmaker increased to Rs 109.9 crore in the first quarter, according to an exchange filing on Thursday.
Akzo Nobel India Q1 Highlights (Consolidated, YoY)
Revenue up 6.6% at Rs 999.2 crore vs 937.7 crore.
Ebitda rises 34% to Rs 162.1 crore vs Rs 121.1 crore.
Ebitda margin at 16.22% vs 12.91%.
Net profit up 43% at Rs 109.9 crore vs Rs 76.9 crore.
The operating profit after tax crossed the Rs 100-crore mark per quarter for the first time due to improved gross margin.
"Over the next few years, volume will play a critical role in driving revenue growth," Managing Director Rajiv Rajgopal said, in an interview with BQ Prime's Sajeet Manghat. "So, it is about getting new users and driving consumption and then trying to trade up consumers within the segment."
Akzo Nobel has an increased focus on getting more people to try their products in an effort to increase their customer base, according to Rajgopal.
The company's current capacity stood at approximately 240–250 million litres, with utilisation being around 60%.
"From a capacity perspective, I don't see an issue because we have been very efficient in the way we drive business," he said. "We have tried to use technology like IoT (Internet of Things) ... to try and make sure that we are able to be far more efficient."
The coatings demand was aided by infrastructure, automotive, marine and oil and gas sectors. Projects were driven by conducive real estate and retail growth was supported by semi-urban and rural geographies, it said.
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