In This Article:
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Revenue Growth: 3% growth led by B2B businesses.
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Volume Growth: Strong double-digit volume growth for the quarter.
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Gross Margin: Erosion of around 100 basis points due to raw material cost inflation.
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Profit After Tax: INR 97.9 crore, a growth of 4%.
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Working Capital: Efficient, at 5% of revenues.
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Liquidity: Ended the September quarter with INR 623 crore.
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Decorative Paints Volume Growth: High single-digit growth.
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Interim Dividend: One-time interim dividend announced to celebrate the 70th year of Akzo Nobel in India.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Akzo Nobel India Ltd (BOM:500710) reported strong double-digit volume growth for the quarter, despite challenging market conditions.
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The company achieved a 3% revenue growth, primarily driven by its B2B businesses.
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The decorative paints vertical experienced high single-digit volume growth, indicating resilience in a competitive market.
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The company maintained efficient working capital management, with working capital as a percentage of revenues at 5%, supporting cash flow generation.
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Akzo Nobel India Ltd (BOM:500710) announced a one-time interim dividend to celebrate its 70th year of business in India, reflecting strong financial health and shareholder value appreciation.
Negative Points
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The company faced a margin erosion of around 100 basis points due to rising raw material costs, impacting gross margins.
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Revenue from the decorative paints segment was flat, affected by the interior part of the portfolio, particularly premium emulsions.
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The rural markets continue to feel the lingering impact of inflation, affecting overall market growth.
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The automotive and specialty coatings business faced challenges, impacting overall performance in these segments.
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There is increased competitive intensity in the market, particularly in the B2C decorative segment, which could pressure future growth and margins.
Q & A Highlights
Q: Are there any signs of a pickup in the retail market, especially with the festive season approaching? A: We have seen a slight pickup in secondary sales in the retail part of the business as we approach Diwali. However, the primary sales to retailers have not matched the offtake levels due to some money crunch in the market. We are focusing on ensuring sales are recognized only when money is collected. There is a slight uptick, but it's too early to declare a full turnaround. (Rajiv Rajgopal, Chairman and Managing Director)