AKZO NOBEL Announces Quarterly Results (1QFY22); Net Profit Up 474.7%

Mon, 16 Aug

AKZO NOBEL has announced its results for the quarter ended June 2021. Here is a detailed performance review of the same:

AKZO NOBEL Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-20*	3 Mar-21*	3 Jun-21*	QoQ Change	YoY Change
Net Sales	Rs m	2,585	7,814	6,264	-19.8%	142.3%
Other income	Rs m	60	58	97	69.2%	62.2%
Turnover	Rs m	2,645	7,871	6,361	-19.2%	140.5%
Expenses	Rs m	2,711	6,676	5,358	-19.7%	97.6%
Gross profit	Rs m	-126	1,138	905	-20.4%
Depreciation	Rs m	175	189	180	-4.9%	2.7%
Interest	Rs m	30	15	27	85.5%	-8.8%
Profit before tax	Rs m	-271	992	796	-19.7%
Tax	Rs m	-68	249	37	-85.2%
Profit after tax	Rs m	-203	743	759	2.2%
Gross profit margin	%	-4.9	14.6	14.5
Effective tax rate	%	25.2	25.1	4.6
Net profit margin	%	-7.7	9.4	11.9

Year-on-Year Performance:

• The company's operating income during the quarter grew 142.3% on a year-on-year (YoY) basis. The expenses were up by 97.6% YoY during the same period.
• The company's operating profit declined by 818.0% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 14.5% in 1QFY22 as against 4.9% in 1QFY21.
• Depreciation charges increased by 2.7% and finance costs declined by 8.8% YoY, respectively.
• Other income increased by 62.2% YoY during the quarter.
• Net profit for the quarter increased by 474.7% YoY. Net profit margins during the quarter increased from -7.7% in 1QFY21 to 11.9% in 1QFY22.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 19.8% on a quarter-on-quarter (QoQ) basis. The expenses were down by 19.7% QoQ during the same period.
• The company's operating profit declined by 20.4% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 14.5% in 1QFY22 as against 14.6% in 4QFY21.
• Net profit for the quarter increased by 2.2% QoQ, while net profit margins increased from 9.4% in 4QFY21 to 11.9% in 1QFY22.

To see how AKZO NOBEL has performed over the last eight quarters,please visit here.

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AKZO NOBEL Share Price Performance

Over the last one year, AKZO NOBEL share price has moved up from Rs 2,003.6 to Rs 2,227.9, registering a Gain of Rs 224.4 or around 11.2%.

Overall, the S&P BSE SENSEX is up 44.9% over the year.

Current Valuations

At the current price of Rs 2,227.9, the price to earnings (P/E) ratio of AKZO NOBEL stands at 33.4 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 7.9 times.