Akzo Nobel India posted a Q1 net profit of ₹91 crore, down 20.5% YoY.
The decline is attributed to increased raw material costs and weak demand.
The company plans to boost operational efficiency to offset headwinds.
Paints and coatings maker Akzo Nobel India Ltd on Monday reported a 20.6% decline in consolidated net profit to ₹91 crore in the June quarter, impacted by lower sales amid tepid consumer demand.
It had posted a consolidated net profit of ₹114.6 crore in the corresponding period last fiscal, Akzo Nobel India said in a regulatory filing.
Consolidated revenue from operations in the quarter under review stood at ₹995.1 crore as compared to ₹1,036.3 crore in the year-ago period, it added.
Total expenses in the April-June quarter were marginally lower at ₹881.6 crore against ₹891.7 crore in the same period a year ago, the company said.
The company, in which JSW Paints had agreed to buy a 74.76% stake for ₹8,986 crore last month, followed by an open offer to buy another 25% from the open market for up to ₹3,929.06 crore, said its board has approved a one-time special interim dividend of ₹156 per share.
Akzo Nobel India Chairman and Managing Director Rajiv Rajgopal said, "In Q1 of FY2025-26, our B2B segment continued its growth trajectory, while retail was subdued due to tepid consumer demand and heightened competition. Despite margin pressure, we sustained double-digit profitability and maintained investments in growth initiatives." On the special interim dividend, he said, "Expressing gratitude to all our shareholders, the board is delighted to announce a one-time special interim dividend of ₹156 per share, inter alia, based on income on slump sale as previously approved by shareholders." Shares of the company were trading 2.06% higher at ₹3,712 apiece on the BSE
