Topline grew in double digits during the quarter. However, margins were impacted due to high input cost and competitive intensity.

The company continues to drive its objective of improving its margins and profitability by enriching its product mix and effective cost management.

AkzoNobel continued its positive engagement with community programs. Recently, we launched a partnership with SOS Children's Villages of India as part of a global partnership between AkzoNobel and SOS Children's Villages International. The initiative is designed to use education and renovation to drive a positive impact on youth unemployment and aims to uplift the lives of young people under the care of SOS Children's Villages.

Performance for the quarter ended December 2018

For quarter ended December 2018, net sales rose 10% to Rs 783.28 crore compared to corresponding previous year period. Operating margins of the company fell 100 bps to 12.9% leading a 2% rise in operating profit to Rs 101.17 crore.

Cost of material consumed as a percentage of net sales (net of stock adjustment) rose 180 bps to 49.2%. Purchase of stock in trade increased 240 bps to 6.5%. Employee benefit expenses decreased 140 bps to 8.8% while other expenses decreased 110 bps to 21.4%.

Other income fell 46% to Rs 9.79 crore. Interest cost was Rs 2.33 crore compared to Rs 0.75 crore. Depreciation rose 16% to Rs 16.5 crore. PBT before EO fell 10% to Rs 92.13 crore. The company had an EO income of Rs 0.2 crore representing divestment provisions no longer required and accordingly written back compared to nil in the corresponding previous year period. PBT after EO was down 10% to Rs 92.33 crore. Considering 1260 bps rise in effective tax rate to 34.6% net profit fell 24% to Rs 60.38 crore.

Performance for nine months ended December 2018

For nine months ended December 2018, net sales rose 10% to Rs 2212.77 crore compared to corresponding previous year period. However company operating margins fell 60 bps to 10.8% leading a 4% increase in operating profit to Rs 238.82 crore.

Cost of material consumed as a percentage of net sales (net of stock adjustment) rose 320 bps to 50.8%. Purchase of stock in trade increased 20 bps to 6.7%. Employee benefit expenses decreased 60 bps to 9.4% while other expenses decreased 200 bps to 22.1%.

Other income fell 13% to Rs 27.01 crore. Interest cost was Rs 3.69 crore compared to Rs 1.85 crore. Depreciation rose 8% to Rs 46.68 crore. PBT before EO as a result was flat at Rs 215.46 crore. The company had an EO income of Rs 0.65 crore compared to EO income of Rs 2 crore in the corresponding previous year period representing divestment provisions no longer required and accordingly written back. PBT after EO was flat at Rs 216.11 crore. Considering 840 bps rise in effective tax rate to 34.9% PAT fell 12% to Rs 140.64 crore.

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