Akzo Nobel Q2 concall highlights –
Sales – 956 vs 926 cr
Gross Margins @ 44.7 vs 38.4 pc
EBITDA – 142 vs 106 cr ( margins @ 14.8 vs 11.5 pc )
PAT – 94 vs 65 cr
Double digit growth in automotive coatings business led by OEM demand. Marine coatings also grew strongly on the back of strong orders from Defence. Protective coatings also grew well driven by oil and gas and power segments
Paints business impacted by subdued demand, erratic rains. Tier -2,3 towns showing good sales pick up. Premium end of the Mkt doing better than mass mkt
Company’s paints business is now on negative working Capital !!!
Cash on Books – aprox 670 cr
Company’s good performance in smaller towns, rural areas led by distribution led gains and lower base vs larger competitors
Q3 likely to see festive tailwinds
Revenue contribution from new products launched in last 2-3 yrs currently at 10 odd pc
Company intends to jack up advertising and sales promotion expenses from 3.5 pc of revenues currently to 5 pc of revenues. Company – advertising heavily during Cricket World Cup
B2B – business has been surprising positively. B2C – remains challenging
Company’s current Mkt share in paints business is around 4.5 pc. Intend to take it beyond 6 pc in about 2 yrs by focussing more on the mass mkt where the company is still on a weaker footing
Velvet touch – premium brand continues to do well
Disc: hold a tracking position. Not SEBI registered. Biased
| Subscribe To Our Free Newsletter |
