Akzo Nobel trades in green as demand improves due to festive season

On Monday, Akzo Nobel declared its results for the quarter ended September 30, 2020, during market hours. Soon after this, its shares jumped by 3 per cent and made an intraday high of Rs 2,030 on BSE.

Its consolidated revenue for the quarter Q2FY21 came in at Rs 606.86 crore as against Rs 633.82 crore in the corresponding quarter last year, registering a 4.3 per cent YoY decline. By September 2020, it has recovered back to its pre-COVID levels. However, on a QoQ basis, its revenue jumped by 134.8 per cent.

EBITDA for the quarter grew by 43.1 per cent YoY to Rs 104.55 crore as against Rs 73.06 crore in the corresponding quarter last year, with a corresponding margin expansion of 570 bps. EBITDA margin for the quarter stood at 17.2 per cent.

PAT for the quarter came in at Rs 66.28 crore as against Rs 49.25 crore in the corresponding quarter last year, with a YoY increase of 34.6 per cent.

Its business has seen improved recovery reaching pre-COVID 19 levels in the rural and non-metro markets during the quarter. The demand in the metro cities remained muted during the quarter and has improved due to the festive season and pent-up demand. The revival in the automotive sector benefitted the business while infrastructure, oil & gas and power segments continued to see demand challenge.

During the quarter, the company has launched Dulux SuperClean and Dulux Promise in the economy segment.

Akzo Nobel India Limited is engaged in manufacturing, trading, and selling paints & coating. It provides research & development services to the holding company along with its group companies.