Akzo Nobel India's Q1 Profit Dips Amid Tepid Demand

Akzo Nobel India Ltd reported a 20.6% decline in net profit to Rs 91 crore for the June quarter, owing to subdued sales amid sluggish consumer demand. Consolidated revenues fell, despite marginally lower expenses. The company announced a one-time special interim dividend following JSW Paints' stake acquisition.

Akzo Nobel India Ltd has reported a significant 20.6% decline in consolidated net profit, which fell to Rs 91 crore during the June quarter. The drop in profit is attributed to weaker sales performance amid sluggish consumer demand.

The company's consolidated revenue from operations also decreased, falling to Rs 995.1 crore compared to Rs 1,036.3 crore during the same quarter last year. Total expenses recorded during this period were slightly reduced to Rs 881.6 crore from the previous year's Rs 891.7 crore.

The decline comes on the heels of JSW Paints' agreement to acquire a major stake, owning up to 74.76%. Additionally, the company announced a special interim dividend of Rs 156 per share. Akzo Nobel India's Chairman, Rajiv Rajgopal, highlighted that B2B growth persisted and reinvestments into growth initiatives continued, despite existing margin pressures.

(With inputs from agencies.)