Akzo Nobel India slides after Q4 PAT drops 23% to Rs 54 cr

Akzo Nobel India fell 1.11% to Rs 1,836.75 after consolidated net profit slipped 23.1% to Rs 54.08 crore on 17.6% decline in net sales to Rs 581.27 crore in Q4 March 2020 over Q4 March 2019.

Consolidated profit before tax (PBT) dropped 25.7% to Rs 73.94 crore in Q4 March 2020 as against Rs 99.45 crore in Q4 March 2019. Current tax expenses skid 26.3% to Rs 21.82 crore in Q4 March 2020 as against Rs 29.60 crore paid in Q4 March 2019. The Q4 result was announced on Saturday, 20 June 2020.

The board recommended a dividend of Rs 14 per equity share for the financial year 2019-20.

Rajiv Rajgopal, managing director, said, "The revenue and profitability were impacted during th e quarter due to the outbreak of COVID 2019. In the full year, the business profitability (EBIT%) has improved 180 bps due to structural portfolio and cost actions. The team continues to focus on people engagement, continuity of operations, cash & liquidity management and supporting communities around which we operate. We have extended support to our painter community through accelerated pay-outs."

Due to the outbreak of COVID 2019 pandemic, the operations of the company were significantly impacted due to supply chain disruptions caused by lock down of plants, offices and warehouses. The company has resumed operations in a phased manner consistent with the directives from the authorities. The company has evaluated the impact of COVID 2019 on its operations & financial position. Based on its review of the macro economic conditions & current outlook for the Indian economy, there is no additional impact in financial statements apart from the financial impact already considered in financial statements of the company as at 31 March 2020. However, given the evolving scenario & uncertainties with respect to its nature & duration, the impact may be different from estimates as on the date of approval of financial results. The company said it will continue to monitor any material changes to its future business and economic conditions.

Meanwhile, the BMW Group has chosen Akzo Nobel to be a trusted supplier of vehicle refinish products and services to a large part of its distribution network around the world. The deal came into effect on 1 February 2020. Covering 44 locations, the agreement means that the company's premium Sikkens and Lesonal brands are now approved for paint repairs of BMW and Mini passenger cars at authorized dealers, repairers, importers and national BMW Group branches.

Akzo Nobel India manufactures and markets a wide range of coatings and paints.

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