Capitaline

Results 07-Feb-24

Analysis

Akzo Nobel India

Double digit growth in volumes

Akzo Nobel India consolidated net sales increased 4.65% to Rs 1032.7 crore in Q3FY24 compared to Q3FY23. Operating profit margin has jumped from 14.48% to 16.11%, leading to 16.45% rise in operating profit to Rs 166.40 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 52.85% to 47.47%. Purchase of finished goods cost rose from 4.83% to 5.64%. Employee cost increased from 8.41% to 8.47%. Other expenses rose from 18.20% to 21.28%.

Other income fell 32.26% to Rs 8.4 crore. PBIDT rose 12.56% to Rs 174.8 crore. Provision for interest rose 23.08% to Rs 3.2 crore.

PBDT rose 12.38% to Rs 171.6 crore. Provision for depreciation fell 4.74% to Rs 20.1 crore.

Profit before tax grew 15.12% to Rs 151.50 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 37.7 crore, compared to Rs 34.2 crore. Effective tax rate was 24.88% compared to 25.99%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 16.84% to Rs 113.80 crore.

Promoters’ stake was 74.76% as of 31 December 2023 ,compared to 74.76% as of 31 December 2022.

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

“We continued to build on profitable growth in Q3 and nine months of FY’24. For the first time, our quarterly topline has surpassed the milestone of Rs 1,000 crore mark, led by double digit growth in volumes. Our Coatings business and B2B segments sustained their robust growth trajectory. In the decorative paints business, retail saw a strong volume growth in the quarter and saw margin improvements. While we continued to invest in our business and brands, our profitability was further strengthened due to raw material deflation and favourable mix coupled with operating leverage.”

The Board of Akzo Nobel India announce an interim dividend of Rs 50 per share for FY24” said Mr. Rajiv Rajgopal, Chairman and Managing Director, Akzo Nobel India.

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Akzo Nobel India has increased 4.82% to Rs 2988.2 crore.

Operating profit margin has jumped from 12.99% to 15.74%, leading to 26.97% rise in operating profit to Rs 470.30 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 56.37% to 50.32%. Purchase of finished goods cost rose from 4.45% to 5.29%. Employee cost increased from 8.08% to 8.40%. Other expenses rose from 17.98% to 20.08%.

Other income rose 19.72% to Rs 25.5 crore. PBIDT rose 26.58% to Rs 495.8 crore. Provision for interest rose 10.71% to Rs 9.3 crore.

PBDT rose 26.92% to Rs 486.5 crore. Provision for depreciation rose 0.83% to Rs 60.5 crore.

Profit before tax grew 31.77% to Rs 426.00 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 108.1 crore, compared to Rs 83.6 crore. Effective tax rate was 25.38% compared to 25.86%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 32.62% to Rs 317.90 crore.

Promoters’ stake was 74.76% as of 31 December 2023 ,compared to 74.76% as of 31 December 2022 .

The scrip trades at Rs 2936

Akzo Nobel India : Consolidated Results
Particulars	2312 (03)	2212 (03)	Var.(%)	2312 (09)	2212 (09)	Var.(%)	2303 (12)	2203 (12)	Var.(%)
Net Sales	1032.70	986.8	5	2988.20	2850.7	5	3,802.10	3,148.60	21
OPM (%)	16.1	14.5		15.7	13.0		13.8	13.7
OP	166.40	142.9	16	470.30	370.4	27	525.1	432.5	21
Other Inc.	8.40	12.4	-32	25.50	21.3	20	27.4	22.7	21
PBIDT	174.80	155.3	13	495.80	391.7	27	552.50	455.2	21
Interest	3.20	2.6	23	9.30	8.4	11	14.1	14.5	-3
PBDT	171.60	152.7	12	486.50	383.3	27	538.40	440.7	22
Depreciation	20.10	21.1	-5	60.50	60	1	82.5	75.9	9
PBT	151.50	131.6	15	426.00	323.3	32	455.90	364.8	25
Share of Profit/(Loss) from Associates	0.00	0		0.00	0		0	0
PBT before EO	151.50	131.6	15	426.00	323.3	32	455.90	364.8	25
EO Income	0.00	0		0.00	0		0	2
PBT after EO	151.50	131.6	15	426.00	323.3	32	455.90	366.8	24
Taxation	37.70	34.2	10	108.10	83.6	29	120.8	76.7	57
PAT	113.80	97.4	17	317.90	239.7	33	335.10	290.1	16
Minority Interest (MI)	0.00	0		0.00	0		0	0
Net profit	113.80	97.4	17	317.90	239.7	33	335.10	290.1	16
EPS (Rs)*	#	#		#	#		73.6	63.4
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

Previous News

Akzo Nobel India consolidated net profit rises 42.91% in the June 2023 quarter
( Results - Announcements 03-Aug-23 12:45 )

Akzo Nobel India standalone net profit increased 52.35% in the March 2019 quarter
( Results - Announcements 04-May-19 17:23 )

Akzo Nobel India
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Akzo Nobel India to conduct board meeting
( Corporate News - 14-Oct-23 12:33 )

Board of Akzo Nobel India recommends Final Dividend
( Corporate News - 24-May-21 10:48 )

Akzo Nobel India standalone net profit rises 227.41% in the March 2018 quarter
( Results - Announcements 11-May-18 16:54 )

Akzo Nobel India standalone net profit declines 35.78% in the June 2017 quarter
( Results - Announcements 14-Aug-17 17:29 )

Akzo Nobel India standalone net profit rises 18.13% in the March 2017 quarter
( Results - Announcements 19-May-17 16:52 )

Board of Akzo Nobel India recommends Final Dividend
( Corporate News - 28-May-22 10:08 )

Akzo Nobel India director cum CFO resigns
( Corporate News - 06-Aug-21 12:58 )

Akzo Nobel India
( Results - Analysis 03-Feb-18 17:36 )