akzo nobel Archives

Amara Raja Batteries Q4 Results: Net profit rises 38% YoY to Rs 189 crore

Amara Raja Batteries reported a 38% YoY increase in consolidated net profit to Rs 189.38 crore for the quarter ended March (Q4). Net profit has declined by 2.23% when compared to the previous quarter. Its revenue from operations rose 33% YoY to Rs 2,102.70 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit declined by 2.11% YoY to Rs 646.83 crore. The company’s board has announced a final dividend of Rs 6 per share.

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Adani Green Energy’s arm transfers 74% stake of Mundra Solar Energy to Adani Tradecom

Adani Renewable Energy Holding Four Ltd, a wholly-owned subsidiary of Adani Green Energy, has transferred 74% shareholding of Mundra Solar Energy Ltd (MSEL) to Adani Tradecom LLP (ATLLP). The subsidiary has transferred 7,400 equity shares of the face value of Rs 10 each, aggregating to Rs 74,000, to ATLLP. MSEL is incorporated to manufacture crystalline silicon solar PV cells, modules, and ancillary products. It is yet to commence business operations.

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AkzoNobel Q4 Results: Net profit rises 37% YoY to Rs 74 crore

AkzoNobel India reported a 37% YoY increase in consolidated net profit to Rs 74.25 crore for the quarter ended March (Q4). Net profit has declined by 15% when compared to the previous quarter. The paints manufacturer’s revenue declined 9% YoY to Rs 2,421.3 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit has declined by 12.56% YoY to Rs 207.64 crore. The company’s board has announced a dividend of Rs 30 per share.

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Hero MotoCorp to resume production at all plants from May 24

Hero MotoCorp said it will resume production at all its manufacturing plants in India from May 24 (Monday). The two-wheeler manufacturer had temporarily shut down operations from April 22 due to the second wave of the Covid-19 pandemic. At the beginning of this week, the company had resumed partial operations at its three plants at Gurugram, Dharuhera (Haryana), and Haridwar (Uttarakhand).

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Natco Pharma gets USFDA approval for generic cancer treatment drug

Natco Pharma Limited has received approval from the US Food & Drug Administration (USFDA) for generic Lenalidomide capsules. The drug is indicated for the treatment of adults with multiple myeloma, mantle cell lymphoma, and myelodysplastic syndromes (cancer). The pharma company has also received final approval for its Abbreviated New Drug Application (ANDA) for Everolimus tablets. This drug is indicated for the treatment of organ rejection in kidney and liver transplants.

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Punjab & Sind Bank Q4 Results: Net profit at Rs 161 crore

Punjab & Sind Bank reported a net profit of Rs 161 crore for the quarter ended March (Q4 FY21). It had reported a net loss of Rs 236 crore in the corresponding quarter last year (Q4 FY20). This is the first quarterly profit for the bank after eight consecutive quarters of net losses. Its total income declined by 15.24% YoY to Rs 1,940.62 crore in Q4 FY21. For the financial year ended March 31, 2021 (FY21), net profit has widened to Rs 2,732.90 crore. This is compared with a net loss of Rs 990.80 crore in FY20.

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FTSE includes Gland Pharma, IRFC in All World Index

Index provider FTSE has included newly listed stocks Gland Pharma and Indian Railway Finance Corporation (IRFC) in its All World index as part of its quarterly rebalancing review. FTSE will also implement the fourth and final tranche of India Foreign Ownership Limit (FOL) changes. All changes will be effective from June 21, 2021. According to a report from Edelweiss Alternate Research, the inclusion of Gland Pharma and IRFC in the All World index is likely to bring in an estimated inflow of $68 million and $20 million, respectively.

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TVS Electronics Q4 Results: Net profit at Rs 5.85 crore

TVS Electronics has reported a standalone net profit of Rs 5.85 crore for the quarter ended March (Q4 FY21). It had posted a net loss of Rs 5.69 crore in the corresponding period last year (Q4 FY20). Its revenue from operations rose 35.79% YoY to Rs 72.31 crore in Q4 FY21. For the financial year ended March 31, 2021 (FY21), net profit has increased by 97.44% YoY to Rs 0.77 crore.

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TCS launches innovation hub to boost sustainable development in Europe

Tata Consultancy Services has launched a co-innovation and advanced research centre in Amsterdam to bring together an ecosystem of partners from academia, government institutions, start-ups, and technology providers. TCS Pace Port Amsterdam will serve as a hub for TCS teams to co-innovate with European customers, guiding them through the discovery, definition, refinement, and delivery phases of innovation.

TCS has also announced plans to set up over 100 Covid-19 vaccination centres across India. The IT company is partnering with hospitals and health care providers to procure doses for vaccinating its associates and their families.

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MCX Q4 Results: Net profit declines 41% YoY to Rs 38 crore

Multi Commodity Exchange of India reported a 41% YoY decline in consolidated net profit to Rs 38.44 crore for the quarter ended March (Q4). Net profit has declined by 46.5% when compared to the previous quarter. Its total income declined by 19.62% YoY to Rs 108.46 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit fell 4.77% YoY to Rs 225.22 crore. MCX’s board has announced a final dividend of Rs 27.70 per share.

Mangalam Cement Q4 Results: Net profit rises 134% YoY to Rs 36 crore

Mangalam Cement reported a 134.5% YoY increase in standalone net profit to Rs 36.4 crore for the quarter ended March (Q4). Net profit has declined by 2% when compared to the previous quarter. Its revenue from operations rose 38.42% YoY to Rs 410.82 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit has increased by 43.5% YoY to Rs 108.98 crore. Mangalam Cement’s board has declared a dividend of Rs 1.50 per share.

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The existing economic conditions have proven to be favourable for the real estate and construction sectors in India. Lower interest rates and higher disposable income amongst people have led to a strong recovery in demand for real estate properties. Developers are focusing on completing projects and are also launching new ones. Since people were forced to stay at home amidst the Covid-19 pandemic, many felt an urge to renovate or decorate their houses/apartments. Also, automobile manufacturers have been receiving an influx of demand for two-wheelers, passenger cars, etc.

All these factors have ultimately provided a major boost for the paint industry. The companies that offer paints and coatings are witnessing increased sales volumes. We have also seen a surge in their stock prices in recent weeks. Let us take a look at some of the top listed companies that fall under the paint industry.

Asian Paints

Asian Paints Limited was founded in 1942 and is based in Mumbai. The company manufactures, sells, and distributes paints and coatings for decorative and industrial use in India. It offers wall finishes, metal finishes, and wood finishes for interior and exterior surfaces. It provides a wide range of mechanised tools, waterproofing products, adhesives, bath fittings, wardrobes, wall coverings, and surface disinfectants. They also offer color consultancy, home painting, décor, interior design, and sanitization services.

The company manufactures essential components such as varnishes, enamels, and lacquers (used for glossy finishes), organic composite solvents, and thinners. It has also ventured into modular kitchens and kitchen components, including wire baskets, cabinets, appliances, and accessories. The company offers its products under the Asian Paints, Apco Coatings, Asian Paints Berger, Causeway Paints, SCIB Paints, Taubmans, and Kadisco Asian Paints brands. They operate in 19 countries and have 26 paint manufacturing facilities around the world. It has a wide distribution network consisting of more than 70,000 dealers.

Financial Performance

Asian Paints reported a 62% year-on-year (YoY) jump in consolidated net profit to Rs 1,265.35 crore for the quarter ended December (Q3). Its revenue from operations rose 25.43% YoY to Rs 6,886.39 crore during the same period. The company’s domestic decorative business delivered more than 30% volume growth, led by premium and luxury portfolios. Asian Paints’ international business also recorded double-digit volume growth, led by Asia and the Middle East. With the revival of economic activities, the company has been receiving more demand for its range of paints and coatings from automobile manufacturers, real estate developers, etc.

Over the last 5 years, the company’s revenue has grown at a CAGR of 6.18%, whereas the industry average stood at 6.68%. Asian Paints has been able to secure a market share of 63.38%. It has continued to show dominance in the market by focusing on research & development and launching innovative products.

The share price of Asian Paints has surged more than 56% since the beginning of the current financial year.

Berger Paints India

Berger Paints India Limited was founded in 1923 and is based in Kolkata. The company manufactures and sells paint products for home, professional, and industrial users in India. It offers a wide range of interior and exterior wall coatings. They also provide waterproofing solutions, construction chemicals, flooring compounds, adhesives, and protective & anti-corrosive coatings. It has 16 manufacturing facilities located across India, Nepal, Poland, and Russia. With a distribution network of more than 25,000 dealers, Berger Paints has been able to provide tailor-made services to individual and corporate clients. The company is a subsidiary of U.K. Paints India Private Limited.

Financial Performance

Amidst the Covid-19 pandemic, Berger Paints reported an impressive 13.55% YoY increase in consolidated net profit to Rs 221.05 crore for the quarter ended September (Q2). The company will post its Q3 results soon. Industry experts have estimated that its revenue and sales will show significant growth.

Over the last 5 years, the company’s revenue has grown at a yearly rate of 8.1%, whereas the industry average stood at 6.68%. It has been showing a consistent jump in revenues and profits during the same period. Berger Paints has been able to secure a market share of 19.83%.

Since April 2020, the share price of Berger Paints India has increased by more than 54%!

Kansai Nerolac Paints

Kansai Nerolac Paints Limited was founded in 1920 and is headquartered in Mumbai. The company manufactures and sells paints, varnishes, enamels, and lacquers in India. It offers interior and exterior decorative wall paints, wood coatings, metal enamel paints, and ancillary paints. The company was formerly known as Goodlass Nerolac Paints Ltd and changed its name to Kansai Nerolac Paints Ltd in April 2006. It is a subsidiary of Kansai Paint Co., Ltd- a Japan-based chemical company.

Kansai Nerolac Paints reported an 11.56% YoY decline in consolidated net profit to Rs 167.96 crore for the quarter ended September (Q2). As India came out of lockdowns, the company saw a very slow recovery in demand for its products. The sales volumes of Kansai’s industrial paints segment, which contributes more than 40% of its overall revenues, had declined. The company is yet to post its Q3 results.

Over the last 5 years, the company’s revenue has grown at a yearly rate of 6.81%, whereas the industry average stood at 6.68%. Kansai Nerolac has been able to secure a market share of 16.35%.

The shares of Kansai Nerolac Paints has surged by more than 57% since April 2020.

Akzo Nobel India

Akzo Nobel India Limited manufactures and sells paints and coatings in India and internationally. The Gurugram-based company offers marine coatings, protective coatings, industrial coatings, automotive, and specialty coatings. It produces paints, varnishes, enamels, and lacquers for interior and exterior use. The company’s products are widely used for oil and gas, power, infrastructure, and wind energy projects. They also cater to the architecture & construction, offshore supply, transport vessels, and fishing sectors.

Akzo Nobel has also ventured into the roofing and domestic appliance sectors. Its products are primarily offered under the Dulux, Sikkens, and Interpon brands. The company was formerly known as ICI India Limited and changed its name to Akzo Nobel India Ltd in February 2010. It is a subsidiary of Akzo Nobel N.V.- a Dutch multinational company that creates paints and performance coatings for industries and consumers worldwide.

Financial Performance

Amidst the impact of the Covid-19 pandemic, Akzo Nobel reported a 35% YoY increase in consolidated net profit to Rs 66.28 crore for the quarter ended December (Q3). However, its revenue from operations was down 4.25% to Rs 606.86 crore during the same period. The company continues to face severe challenges with respect to demand. It is yet to post Q3 results.

Akzo Nobel’s revenues and profits have been showing a sharp decline since the previous financial year. Over the last 5 years, the company’s revenue has grown at a yearly rate of 0.82%, whereas the industry average stood at 3.41%. They have been able to secure a market share of 6.12% in the Specialty Chemicals sector.

Since April 2020, the share price of Akzo Nobel India has increased by 10% so far.

Conclusion

The paint industry is currently booming in India. These companies have been able to meet the requirements of individual homeowners through well-defined distribution networks. They have catered to the rising demand from the real estate and automobile sectors. They have also invested heavily in research & development activities and advertisements. The technological advancements in this industry have heavily contributed to their overall growth. Recently, paint companies reported that there had been a rise in the cost of essential raw materials. The price of crude oil (which is a primary raw material for paints) has been increasing. Thus, several companies are planning to hike the prices of their paint and coating products in Q4.

At the same time, we can see an increase in competition in this particular industry. Indigo Paints has emerged as a top competitor by reporting strong growth over the years. The company’s shares will get listed on the stock markets on February 2. Meanwhile, Grasim Industries has announced its plans to enter the decorative paints business, which is a Rs 40,000 crore industry in India. It would invest Rs 5,000 crore in the next three years and is eyeing the second position in the sector (in terms of market share). After the announcement, we saw Grasim’s shares rise as much as 11% (intraday) on Jan 25. On worries about increased competition, the stocks of major paint firms fell between 3% and 6% on the same day. Grasim’s entry is expected to cause excessive price-led competition in the paint industry.

Will the listed firms mentioned above be able to face these challenges in the years to come? Will end-consumers be affected due to a further rise in the prices of paints? Let us wait and watch.