Today, the Board of Directors of Akzo Nobel India Limited approved the financial results for the quarter and the year ended March 31, 2020.
Year ended 31 March 2020
- Revenue from operations at ₹2,661.8 crores declined 9% over the previous year
- Profit from operations at ₹300.1 crores grew by 8% over the previous year
- Profit after Tax was ₹237.4 crores grew by 13% over the previous year
Q4 FY20 versus Q4 FY19
- Revenue from operations at ₹581.3 crores declined by 18% over the previous year on a comparable basis impacted by lockdown in 2nd fortnight of March 2020
- Profit from Operations at ₹67.7 crores declined by 20% over the previous year
- Profit after Tax was ₹54.0 crores declined by 23% over the previous year; on a comparable basis decline was 9% excluding the impact of a Tax refund of last year and exceptional items.
The outbreak of COVID 2019 pandemic has created economic disruption throughout the world including India. Akzo Nobel India Limited has ensured compliance with the lockdown protocols in accordance with the guidelines issued by the Central and State governments and local authorities. The operations of the Company were significantly impacted due to supply chain disruptions caused by the lockdown of plants, offices and warehouses. The Company has resumed operations in a phased manner consistent with the directives from the Government of India/ State governments/ Local authorities. The Company has evaluated the impact of COVID 2019 on its operations & financial position. Based on its review of the macroeconomic 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 will continue to monitor any material changes to its future business and economic conditions.
The revenue had started to show stability in the first two months of 2020 after two-quarters of decline. However, the countrywide lockdown due to COVID 2019 has severely impacted the business from the second fortnight of March 2020 coinciding with the outbreak of COVID and subsequent national lockdown. As the complex situation regarding the global pandemic continues to evolve, AkzoNobel remains focused on ensuring employee health and safety and maintaining business continuity. Various steps are underway to continue serving customers, reducing costs while responding quickly to changes in market demand.
Amit Jain, Chairman, AkzoNobel India:
▪ AkzoNobel historically has had a consistent dividend policy. Despite the prevailing pandemic situation and the uncertainties around it, the Board has recommended a dividend of ₹ 14 per share, subject to the approval of shareholders.
▪ CSR initiatives focus on responding to COVID 2019 in these unprecedented times. The Company has focussed on e-health initiative, providing food to daily wage earners and contribution to the PM Cares Fund.
▪ AkzoNobel continues to abide by the government directives, and we are thankful to the central and state government for providing continued support.
Rajiv Rajgopal, Managing Director, AkzoNobel India:
- The revenue and profitability were impacted during the quarter due to the outbreak of COVID 2019. In the full year, business profitability (EBIT%) has improved 180 bps due to the structural portfolio and cost actions.
▪ Our top priority at AkzoNobel is the health and safety of our people. 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.
CSR switches focus to COVID 2019 response
Villagers living near Bangalore are receiving initial screening for COVID 2019 through an existing e-health initiative which had been set up as part of the company’s AkzoNobel Cares program. Following the outbreak, the focus of the community healthcare project was changed to help tackle the virus.
We’ve also provided essential food items to daily wage earners in Gurgaon, Gwalior and Navi Mumbai, including underprivileged children studying at AkzoNobel, supported education centres. In addition, we have partnered with Faridabad district prison to meet the surging demand for face masks.
Supply deal secured with leading car manufacturer
The BMW Group has chosen AkzoNobel to be a trusted supplier of vehicle refinishing products and services to a large part of its distribution network around the world. The deal came into effect on February 1, 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.