Akzo Nobel India posts Rs 114.6 cr profit in Q1

New Delhi: Paints and coatings maker Akzo Nobel India Ltd on Thursday reported an increase of 4.27 per cent in consolidated net profit to Rs 114.6 crore for the June quarter, aided by a double-digit volume growth and expansion of margins.

The company had posted a net profit of Rs 109.9 crore in the year-ago period, according to a regulatory filing from Akzo Nobel.

Its revenue from operations was up 3.71 per cent to Rs 1,036.3 crore during the quarter under review. It was Rs 999.2 crore in the corresponding period of the previous fiscal year.

This is "highest-ever absolute performance across revenue, gross margin, EBIT and PAT," said Akzo Nobel India in its earnings statement.

Total expenses of Akzo Nobel, the maker of Dulux paints, increased 3.71 per cent to Rs 891.7 crore during the quarter.

Akzo Nobel's total income during the quarter was Rs 1,046 crore, up 3.83 per cent.

Commenting on results, Chairman and Managing Director Rajiv Rajgopal said, "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. These resulted in sustained double-digit profitability," he said.

Over the outlook, Rajgopal said, he expects "an increase in the raw material costs" in the second half of the fiscal.

"As a result, we are taking necessary pricing actions without losing competitiveness," he said.

Shares of Akzo Nobel India Ltd were trading at Rs 3,035.95 on the BSE, up 2.06 per cent from its previous close.