Akzo Nobel India Reports Record Performance with 4.27% Profit Increase

Paints and coatings company Akzo Nobel India Ltd reported a 4.27% increase in net profit for the June quarter, achieving its highest-ever revenue and gross margin. The company attributed its double-digit volume growth and expanded margins to strategic cost initiatives and sourcing efficiencies.

Akzo Nobel India Ltd, a leading paints and coatings manufacturer, has announced a 4.27% rise in consolidated net profit, reaching Rs 114.6 crore for the June quarter. This impressive performance was driven by double-digit volume growth and improved margins.

According to a regulatory filing, the company's net profit stood at Rs 109.9 crore in the same period last year. Revenues from operations increased by 3.71% to Rs 1,036.3 crore, compared to Rs 999.2 crore in the corresponding quarter of the previous fiscal year.

'This quarter marked our highest-ever absolute performance across revenue, gross margin, EBIT, and PAT,' the company stated. Their total expenses grew by 3.71% to Rs 891.7 crore, while total income rose by 3.83% to Rs 1,046 crore.

Chairman and Managing Director Rajiv Rajgopal commented, 'In the first quarter, we continued to deliver double-digit volume growth across our operating verticals, driven primarily by B2B. Our gross margins expanded due to cost initiatives and sourcing efficiencies. We continued to invest in our brands and growth initiatives, resulting in sustained double-digit profitability.'

Looking ahead, Rajgopal anticipates an increase in raw material costs in the second half of the fiscal year, necessitating pricing adjustments to maintain competitiveness. Shares of Akzo Nobel India Ltd traded at Rs 3,035.95 on the BSE, a 2.06% rise from its previous close.

(With inputs from agencies.)