AkzoNobel India announces Q1 FY 2020-21 results

The Board of Directors of Akzo Nobel India Limited today approved the unaudited financial results for the quarter ended June 30, 2020.

Performance highlights

Q1 FY21 versus Q1 FY20

- Revenue from operations at ₹258.5 crores declined by 64% over the previous year, mainly due to a shutdown until mid-May in most parts of the country and a gradual revival since then

- EBITDA loss at ₹12.6 crores and EBIT loss at ₹30.1 crores due to lower volume. The corresponding numbers for EBITDA profit and EBIT profit for the same quarter last year were ₹103.4 crores and ₹83.2 crores respectively

Commenting on the performance for the quarter, Rajiv Rajgopal, Managing Director, AkzoNobel India, 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 was heavily impacted.

Metros and large towns continued to see a relatively higher impact from the pandemic, resulting in slower offtake of the premium segments where we have a higher salience. Tier 2 and Tier 3 markets have performed relatively better.

During the quarter, we achieved a significant reduction in operating costs which led to a resumption of profits in June. 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. Our focus on safety and the well-being of our employees - as well as other stakeholders - continues to be a top priority."

Shares of Akzo Nobel India Limited was last trading in BSE at Rs.1883 as compared to the previous close of Rs. 1918.15. The total number of shares traded during the day was 1191 in over 440 trades.

The stock hit an intraday high of Rs. 1957 and intraday low of 1883. The net turnover during the day was Rs. 2293040.

Source : Equity Bulls

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