Akzo Nobel India's Profit Decline Amid Tepid Demand

Akzo Nobel India Ltd reported a 20.6% decline in net profit for the June quarter, impacted by subdued consumer demand. The company maintained double-digit profitability through its B2B segment growth and announced a special interim dividend for shareholders, despite lower consolidated revenue and sales.

Akzo Nobel India Ltd, a leader in the paints and coatings industry, experienced a 20.6% drop in net profit for the June quarter. This downturn is attributed to sluggish consumer demand that resulted in lower sales.

The company, which reported a consolidated net profit of Rs 91 crore compared to Rs 114.6 crore in the same period last year, saw its consolidated revenue decline to Rs 995.1 crore from Rs 1,036.3 crore a year earlier. Total expenses were slightly lower at Rs 881.6 crore.

In other strategic moves, JSW Paints agreed to acquire a significant stake in Akzo Nobel India. The board also approved a special interim dividend of Rs 156 per share, a gesture of gratitude towards the shareholders. Company shares rose by 2.06% on the BSE.

(With inputs from agencies.)