Paintmaker Akzo Nobel India expects demand rebound in second half of 2025 (updated)

JSW Dulux

07/02/2025 13:55

(Rewrites with management commentary from post-earnings call)
    By Hritam Mukherjee
       Feb 7 (Reuters) - Akzo Nobel India  AKZO.NS  said on
Friday it expects the demand for paints to recover from the
second half of the year after the effects of the federal
budget's consumption-boosting proposals filter through essential
items before influencing discretionary purchases.
    Last week, the government dished out its biggest income tax
relief in at least a decade, hoping that higher disposable
incomes would boost demand and consumption, thereby lifting the
economy.
    However, the effects of that on the demand for discretionary
items such as paints will only start from the second half of
this year, Akzo Nobel Chairman and Managing Director Rajiv
Rajgopal said in a post-earnings call.
    Earlier in the day, the 'Dulux' paintmaker reported a 5%
fall in consolidated third-quarter net profit to 1.09 billion
rupees ($12.47 million) as its 2% increase in its revenue was
outweighed by a 2.3% rise in expenses.
    Paintmakers saw weak demand from retail consumers who are
choosing cheaper brands in the face of high inflation, analysts
say and demand forecasts by paint companies have been mixed so
far.
    While market leader Asian Paints  ASPN.NS  missed earnings
estimates and issued a grim demand outlook, Kansai Nerolac
 KANE.NS  said it also expects the lower income tax rates to
increase demand.
    Akzo Nobel India's larger peers, Grasim Industries  GRAS.NS 
and Berger Paints  BRGR.NS , are due to report their results
next week.

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AKZO INDIA Q3    https://tmsnrt.rs/4hLB6zg
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 (Reporting by Hritam Mukherjee and Ashna Teresa Britto in
Bengaluru; Editing by Savio D'Souza)
 ((Hritam.Mukherjee@thomsonreuters.com; Twitter:
@MukherjeeHritam;))