EBITDA margin of the company fell 220 bps to 9.9% in Q2FY'14 compared to Q2FY'13 while PAT margin of the company fell 270 bps to 5.9% over the same period.

Amit Jain, Managing Director, Akzo Nobel India commented:

"Despite tough market conditions our business saw a revenue growth of 11% during this quarter. Operating profit was impacted by rupee depreciation and increase in marketing spend and grew 4%.

The recently launched premium decorative paints, namely, Dulux Velvet Touch trends and Dulux super Clean are being well accepted by discerning consumers."

"On account of the Special dividend payout earlier this year, there has been reduction in the cash surplus, resulting in drop in investment income. This taken together with higher tax charge has led to lower PAT compared to previous year corresponding period."

Performance for the quarter ended September 2013

For quarter ended September 2013, the overall top-line rose 10% to Rs 576.35 crore compared to corresponding previous year period. However company operating margins fell 40 bps to 6.5% as purchase of stock in trade as a percentage of net sales (net of stock adjustment) rose 20 bps to 10.1%, cost of material consumed increased 90 bps to 49% and other expenses rose 50 bps to 26.7% compensated by 80 bps fall in employee benefits expenses to 8.2%. As a result operating profits grew 3% to Rs 37.6 crore

Other income fell 28% to Rs 19.65 crore. Interest cost increased by 38% to Rs 0.54 crore. Depreciation rose 3% to Rs 10.34 crore. PBT fell 13% to Rs 46.37 crore. Considering 1150 bps rise in effective tax rate to 27.3% net profit fell 25% to Rs 33.73 crore.

Performance for half year ended September 2013

For half year ended September 2013, the overall top-line rose 6% to Rs 1149.99 crore compared to corresponding previous year period. However company operating margins fell 70 bps to 7.5% as cost of material consumed as a percentage of net sales (net of stock adjustment) rose 100 bps to 48.6%, and other expense rose 90 bps to 26.6% limited by 40 bps fall in purchase of stock in trade to 9.3% and 40 bps fall in employee benefit expense to 8.3%. As a result operating profits growth fell 3% to Rs 86.61 crore

Other income fell 53% to Rs 29.82 crore. Interest cost decreased by 11% to Rs 0.91 crore. Depreciation rose 4% to Rs 20.12 crore. PBT as a result fell 28% to Rs 95.4 crore. Considering 820 bps rise in effective tax rate to 28.2% PAT fell 35% to Rs 68.54 crore.

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

The scrip closed Rs 896.5 at BSE