Indigo Paints profit zooms 173% in Q2 | The Financial Express

Indigo Paints profit zooms 173% in Q2

The company expects a much sharper increase in profitability parameters in future quarters with comfortable margins due to stabilising raw material prices and aggressive growth focus.

Indigo Paints profit zooms 173% in Q2
Indigo's second quarter revenues rose by 23.71% to Rs 242.61 crore, while the Ebitda margin expanded to 13.92% from 11.92% in Q2FY23. (IE)

Decorative paints company Indigo Paints on Thursday reported a 173.75% year-on-year (y-o-y) rise in net profit at Rs 37.09 crore in the quarter ended September. The improvement in profits was driven by periodic and incremental price hikes in select products and good traction in sales in Tier-1 and Tier-2 cities.

Indigo’s second quarter revenues rose by 23.71% to Rs 242.61 crore, while the Ebitda margin expanded to 13.92% from 11.92% in Q2FY23, due to reversal of excess tax provision and lower advertising and promotional costs. An excess tax provision of Rs 16.33 crore pertaining to earlier years was reversed.

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The company expects a much sharper increase in profitability parameters in future quarters with comfortable margins due to stabilising raw material prices and aggressive growth focus. The strategy of increasing their presence in the Tier-1 and Tier-2 cities is expected to yield rich results in the upcoming quarters. The company said it would continue to increase dealer count and tinting machine population in larger towns. The upcoming plant in Tamil Nadu was in the final stage of completion and could be commissioned in Q4FY23.

During the quarter, the company launched a new marketing campaign with actor Mohan Lal as brand ambassador to promote its products in Kerala, a significant market for Indigo.

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First published on: 04-11-2022 at 01:45 IST