Akzo Nobel India posts Q1 Net at Rs 60.89 cr

The co posted a net profit of Rs 68 crore for the same quarter in the previous fiscal

Paints and coatings maker Akzo Nobel India today reported a net profit of Rs 60.89 crore for the first quarter ended June
30, 2012, that was impacted mainly on account of increase in cost of raw material.

The company had posted a net profit of Rs 67.98 crore for the same quarter previous fiscal, Akzo Nobel India said in a statement.

"The current quarter's performance is not directly comparable with the corresponding quarter of the last financial year since the current quarter
reflects the performance of the recently merged company," Akzo Nobel India said.

Net sales of the company however rose to Rs 549.77 crore for the quarter under consideration from Rs 338.56 crore for the same period year ago.

 Commenting on the results Akzo Nobel India Managing Director Amit Jain said: "Inspite of uncertain market conditions, all coatings business
segments continue to demonstrate robust growth propelled by ongoing investments in brand and distribution."

New product innovations and capacity additions are also contributing to the incremental growth, he added.

"Raw material cost increase of 14% and currency depreciation have impacted operating margin," the company said.

Shares of Akzo Nobel India today closed at Rs 879 on BSE, down 1.05% from its previous close.