Paint maker Akzo Nobel India reports Q1 profit rise on higher demand

Reuters

Paint maker Akzo Nobel India reports Q1 profit rise on higher demand

Aug 1, 2024 at 6:51 am GMT

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BENGALURU, Aug 1 (Reuters) -Akzo Nobel India AKZO.NS reported a 4.3% rise in its first-quarter profit on Thursday, as demand for its paint products across different verticals picked up in June ahead of the monsoon.

The maker of Dulux Paints said its consolidated net profit rose to 1.15 billion rupees ($13.74 million) in the quarter ended June 30, from 1.1 billion rupees a year earlier.

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KEY CONTEXT

Indian paint makers have benefited from rising real estate demand and automotive sales. However, price cuts undertaken to retain customers due to stiff competition have weighed on their sales.

Akzo Nobel India said it recorded double-digit volume growth across different verticals in the business-to-business segment in the quarter, without specifying details.

However, the company said it is undertaking pricing actions "without losing competitiveness" on account of rising raw material costs in second half of the fiscal year.

Larger peer Kansai Nerolac KANE.NS reported a higher adjusted profit for the June quarter and said demand remained strong for its automotive coatings.

PEER COMPARISON

		Valuation (next 12 months)		Estimates (next 12 months)		Analysts' sentiment
	RIC	PE	EV/EBITDA	Revenue growth %	Profit growth %	Mean rating*	# of analysts	Stock to price target**	Div yield (%)
Akzo Nobel India	AKZO.NS	29.72	19.40	-	-	Hold	2	1.12	2.61
Berger Paints India	BRGR.NS	50.16	31.49	8.16	4.56	Sell	20	1.10	0.65
Kansai Nerolac Paints	KANE.NS	29.80	18.61	8.78	25.46	Hold	11	0.87	0.91
Asian Paints	ASPN.NS	54.36	37.40	6.40	-2.59	Hold	34	1.03	1.13