Akzo Nobel India reports Q1 net loss of Rs 20 cr as Covid-19 hits demand

Paints and coatings maker Akzo Nobel India Ltd on Monday reported a consolidated net loss of Rs 20.26 crore for the June quarter due to lower volume and demand impacted by lockdown.

The company had posted a net profit of Rs 57.14 crore during the April-June quarter of the previous fiscal,Akzo Nobel said in a regulatory filing.

Its revenue from operations during the quarter under review was down 64.08 per cent to Rs 258.50 crore as against Rs 719.69 crore in the corresponding period of the previous fiscal.

Revenue from operations at Rs 258.5 crores declined by 64 per cent over the previous year, mainly due to shutdown until mid-May in most parts of the country and a gradual revival since then, said AkzoNobel India in an earning statement.

Akzo Nobel total expenses were at Rs 291.57 crore during the first quarter of 2020-21 as against Rs 639.04 crore in the year-ago period.

Commenting on the performance, AkzoNobel India managing director Rajiv Rajgopal said: Business came to a standstill in April due to a complete lockdown, the partial resumption in May and Unlock 1.0 being announced in June. Demand from automotive, infrastructure, oil and gas and construction segments were heavily impacted.

During the quarter, AkzoNobel India has achieved a significant reduction in operating costs which led to a resumption of profits in June, it added.

We will continue to manage the uncertain environment and volatility with a focus on costs and driving recovery in the build-up to the festive season, the company said.

Shares of Akzo Nobel India Ltd settled at Rs 1,883.00 on BSE, down 1.83 per cent over previous close.