Capitaline

Results 09-Feb-23

Analysis

Akzo Nobel India

Sales grew 25% in 9MFY23

Akzo Nobel India consolidated net sales increased 7.92% to Rs 986.8 crore in Q3FY23 compared to Q3FY22. Operating profit margin has jumped from 13.99% to 14.48%, leading to 11.73% rise in operating profit to Rs 142.90 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 57.47% to 52.85%. Purchase of finished goods cost rose from 2.92% to 4.83%. Employee cost increased from 7.07% to 8.41%. Other expenses fell from 18.39% to 18.20%.

Other income rose 163.83% to Rs 12.4 crore. PBIDT rose 17.12% to Rs 155.3 crore. Provision for interest fell 18.75% to Rs 2.6 crore.

PBDT rose 18.01% to Rs 152.7 crore. Provision for depreciation rose 11.05% to Rs 21.1 crore.

Profit before tax grew 19.20% to Rs 131.60 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 34.2 crore, compared to Rs 26.6 crore. Effective tax rate was 25.99% compared to 24.09%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 16.23% to Rs 97.40 crore.

Promoters’ stake was 74.76% as of 31 December 2022 ,compared to 74.76% as of 31 December 2021.

Commenting on the performance, Rajiv Rajgopal, Managing Director, Akzo Nobel India said,

“In the first nine months of the fiscal year, our robust 25% revenue growth has led to market share gains across businesses.”

He added “We have registered a topline growth of 8% in the quarter led by a strong performance across the Coatings businesses. Decorative paints saw a relatively muted growth, retail markets were affected by monsoon in October but saw an uptick in November and December. Our double-digit profitability was driven by margin management and operating efficiencies.”

“The Board of Akzo Nobel India remains committed to creating value for its shareholders. Hence, based on the performance in the nine months ended 31 December 2022, the Board is delighted to announce an interim dividend of Rs 25 per share for the year 2022-23,” said Mr. Oscar Wezenbeek, Chairman, Akzo Nobel India.

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Akzo Nobel India has increased 24.95% to Rs 2850.7 crore.

Operating profit margin has declined from 13.73% to 12.99%, leading to 18.26% rise in operating profit to Rs 370.40 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 53.93% to 56.37%. Purchase of finished goods cost fell from 7.03% to 4.45%. Employee cost increased from 8.07% to 8.08%. Other expenses rose from 17.71% to 17.98%.

Other income rose 21.02% to Rs 21.3 crore. PBIDT rose 18.41% to Rs 391.7 crore. Provision for interest fell 4.55% to Rs 8.4 crore.

PBDT rose 19.04% to Rs 383.3 crore. Provision for depreciation rose 5.82% to Rs 60 crore.

Profit before tax grew 21.86% to Rs 323.30 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 83.6 crore, compared to Rs 49.8 crore. Effective tax rate was 25.86% compared to 18.77%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 11.23% to Rs 239.70 crore.

Promoters’ stake was 74.76% as of 31 December 2022 compared to 74.76% as of 31 December 2021 .

The scrip trades at Rs 2226

Akzo Nobel India : Consolidated Results
Particulars	2212 (03)	2112 (03)	Var.(%)	2212 (09)	2112 (09)	Var.(%)	2203 (12)	2103 (12)	Var.(%)
Net Sales	986.80	914.4	8	2850.7	2281.5	25	3,148.60	2,421.40	30
OPM (%)	14.5	14.0		13.0	13.7		13.7	14.1
OP	142.90	127.9	12	370.4	313.2	18	432.5	340.8	27
Other Inc.	12.40	4.7	164	21.3	17.6	21	22.7	23.2	-2
PBIDT	155.30	132.6	17	391.70	330.8	18	455.2	364	25
Interest	2.60	3.2	-19	8.4	8.8	-5	14.5	10.3	41
PBDT	152.70	129.4	18	383.30	322	19	440.7	353.7	25
Depreciation	21.10	19	11	60	56.7	6	75.9	75.5	1
PBT	131.60	110.4	19	323.30	265.3	22	364.8	278.2	31
Share of Profit/(Loss) from Associates	0.00	0		0	0		0	0	-
PBT before EO	131.60	110.4	19	323.30	265.3	22	364.8	278.2	31
EO Income	0.00	0		0	0		2	0	-
PBT after EO	131.60	110.4	19	323.30	265.3	22	366.8	278.2	32
Taxation	34.20	26.6	29	83.6	49.8	68	76.7	70.6	9
PAT	97.40	83.8	16	239.70	215.5	11	290.1	207.6	40
Minority Interest (MI)	0.00	0		0	0		0	0	-
Net profit	97.40	83.8	16	239.70	215.5	11	290.1	207.6	40
EPS (Rs)*	#	#		#	#		63.4	45.6
Notes
* EPS is on current equity of Rs 45.54 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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