Akzo Nobel India Q4 profit rises 37%

Akzo Nobel India Q4 profit rises 37%

NEW DELHI: Paints and coatings maker Ltd on Saturday reported a 37.3 per cent increase in consolidated net profit to Rs 74.25 crore for the fourth quarter ended March 2021.

The company had posted a net profit of Rs 54.08 crore during the January-March period a year ago, Akzo Nobel said in a regulatory filing.

Revenue from operations grew 34.42 per cent to Rs 781.35 crore as against Rs 581.27 crore in the corresponding quarter of the previous fiscal.

“The trend of recovery was sustained, with the quarter bringing a strong finish to a challenging year. Paints, Powder, and Automotive and Specialty Coatings saw strong growth, although we faced headwinds in oil and gas segment,” the company’s Managing Director Rajiv Rajgopal said.

“While the businesses reported strong double-digit volume growth during the quarter, demand for the same period last year was impacted by COVID-19 (impacting the year-on-year comparison),” he added.

Total expenses were at Rs 687.94 crore in Q4 FY 2020-21, up 33.73 per cent from Rs 514.42 crore earlier.

For the full fiscal year 2020-21, the company’s net profit was down 12.6 per cent at Rs 207.64 crore. It was Rs 237.46 crore in the previous year.

Revenue from operations dipped 9.03 per cent to Rs 2,421.35 crore as against Rs 2,661.81 crore in FY 2019-20.

“In terms of our full-year performance, revenue was 9 per cent lower during 2020-21, with the second half partially offsetting the adverse impact of the first half. Margins were close to the previous year’s level, as a result of cost discipline and transformation initiatives,” Rajgopal said.

On the outlook, he said raw material cost inflation is expected to continue.

“Although the industry outlook remains positive, the second wave of COVID-19 infections presents a challenging environment in the short-term,” he said.

In a separate filing, Akzo Nobel India said its board on Saturday recommended final dividend of Rs 30 per equity share for the financial year 2020-21.

Total dividend for the financial year aggregates to Rs 50 per share, including interim dividend of Rs 20 approved by the board on February 9, 2021 and paid subsequently, it said.

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