Q2 2025 Akzo Nobel India Ltd Earnings Call Transcript
Key Points
- Akzo Nobel India Ltd (BOM:500710) reported strong double-digit volume growth for the quarter, despite challenging market conditions.
- The company achieved a 3% revenue growth, primarily driven by its B2B businesses.
- The decorative paints vertical experienced high single-digit volume growth, indicating resilience in a competitive market.
- The company maintained efficient working capital management, with working capital as a percentage of revenues at 5%, supporting cash flow generation.
- Akzo Nobel India Ltd (BOM:500710) announced a one-time interim dividend to celebrate its 70th year of business in India, reflecting strong financial health and shareholder value appreciation.
- The company faced a margin erosion of around 100 basis points due to rising raw material costs, impacting gross margins.
- Revenue from the decorative paints segment was flat, affected by the interior part of the portfolio, particularly premium emulsions.
- The rural markets continue to feel the lingering impact of inflation, affecting overall market growth.
- The automotive and specialty coatings business faced challenges, impacting overall performance in these segments.
- There is increased competitive intensity in the market, particularly in the B2C decorative segment, which could pressure future growth and margins.
Ladies and gentlemen, good day and welcome to Q2 FY25 earnings conference call of Akzo Nobel India Ltd, hosted by ICICI Securities. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr Aniruddha Joshi from ICICI Securities. Thank you and over to you.
Yeah, thanks on behalf of ICICI Securities. We welcome you all to Q2 FY25 results webinar of Akzo Nobel India. We have with the senior management represented by Mr. Rajiv Rajgopal, Chairman and managing director, Mr. Krishna R, CFO and wholetime director, Mr Rajeev, Jha Company Secretary and Compliance Officer. Now I hand over the call to Mr Rajiv Jha for his opening statement. Thanks and over to you, Mr Jha.
So good afternoon. Once again, everyone who have
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