PAT for the quarter at 35 crore rupees is not comparable with the corresponding quarter of the previous year on account of exceptional items in the corresponding quarter of previous year and change in the maturity profile of Investments

EBITDA margin of the company fell 330 bps to 10.3% in Q1FY'14 compared to Q1FY'13 while PAT margin of the company fell 470 bps to 6.1% over the same period.

Nihal Kaviratne CBE, Chairman, Akzo Nobel India commented:

"The synergy benefits which accrued post-merger as well as savings resulting from the lower capex and speedier execution of the Gwalior factory, have enabled us to reward our shareholders with a special dividend for the year 2012-13."

Amit Jain, Managing Director, Akzo Nobel India commented:

"The muted revenue growth reflects the softening demand in the coatings and chemicals industry, across most of our business segments. On a brighter note, our Industrial coatings businesses have star-performed, triggered by a continuing growth momentum."

"The depreciating rupee has impacted the coatings industry due to the industry's reliance on imported raw materials. This has led to unanticipated cost pressures, which we have had to offset by selective pricing action."

"Our investment income for the quarter has been impacted by the timing of maturities of FMPs; however, the underlying performance of our portfolio continues to be robust."

"Our Greenfield coatings facility coming up in Gwalior is progressing ahead of schedule with respect to its completion and even more significantly, its execution is being capped at much below the budgeted capital outlay."

Performance for the quarter ended June 2013

For quarter ended June 2013, the overall top-line rose 2% to Rs 573.64 crore compared to corresponding previous year period. However company operating margins fell 100 bps to 8.5% as purchase of stock in trade as a percentage of net sales (net of stock adjustment) fell 100 bps to 8.5% offset by 100 bps rise in cost of materials consumed to 48.2% and 120 bps rise in other expenses to 26.4%. Employee benefit expense remained flat at 8.4%. As a result operating profits growth fell 8% to Rs 49.01 crore

Other income fell 57% to Rs 10.17 crore. Interest cost decreased by 41% to Rs 0.37 crore. Depreciation rose 5% to Rs 9.78 crore. PBT before EO as a result fell 27% to Rs 49.03 crore. The company had an EO income of Rs 11.9 crore in Q1FY'13 in respect of interest on income tax refunds relating to earlier years. PBT after EO fell 38%. Considering 620 bps rise in effective tax rate to 29% net profit fell 43% to Rs 34.81 crore.

Performance for year ended March 2013

For year ended March 2013, the overall top-line rose 12% to Rs 2231.98 crore compared to corresponding previous year period. However company operating margins fell 40 bps to 8.4% as employee benefit expense as a percentage of net sales (net of stock adjustment) rose 70 bps to 7.9%, and other expense rose 10 bps to 25.8% limited by 60 bps fall in cost of materials consumed to 48.9% and 20 bps fall in purchase of stock in trade to 9%. As a result operating profits growth rose 8% to Rs 188.58 crore

Other income rose 23% to Rs 138.12 crore. Interest cost increased by 128% to Rs 8.93 crore. Depreciation rose 5% to Rs 38.65 crore. PBT as a result rose 13% to Rs 279.12 crore. Considering 320 bps rise in effective tax rate to 21.2% PAT rose 9% to Rs 219.86 crore. Considering prior period items of Rs 1.03 core net profit rose 8% to Rs 218.83 crore

Promoter's share holding remains unchanged at 72.96% at the end of quarter ended June 2013 compared to previous quarter.

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