Indigo Paints on Friday reported a 29.9 percent year-on-year (YoY) increase in net profit at Rs 24.3 crore for the third quarter ended December 31, 2021.
In the corresponding quarter last year, the company posted a net profit of Rs 18.7 crore. Total revenue for the quarter rose 26.6 percent YoY to Rs 265.4 crore from Rs 209.6 crore in the year-ago quarter despite the overhang of the Omicron wave.
At the operating level, EBITDA increased 22.2 percent to Rs 38.5 crore in Q3 FY22 over Rs 31.5 crore in Q3 FY21. EBITDA margin stood at 14.5 percent in Q3 FY22 as compared to 15 percent in Q3FY21. EBITDA is earnings before interest, tax, depreciation and amortization.
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The gross margins improved sequentially from 41.72 percent in Q2 FY22 to an industry-leading 42.89 percent in Q3 FY22. The company, in line with the brand-building strategy, had almost maintained the advertising spend at Rs 29.56 crore.
In line with the industry, Indigo Paints has also increased the product prices in the quarter under consideration to mitigate the sharp escalation in the price of raw materials.
Net revenue from operations for the nine months ended December 31, 2021, was Rs 617.60 crore as against Rs 469.06 crore in the corresponding period of the previous year representing an increase of 31.67 percent over 9M FY21.
EBIDTA (excluding other income) for the nine months ended December 31, 2021, was Rs 82.22 crore as against Rs 79.58 crore in the corresponding period of the previous year representing an increase of 3.32 percent.
Revenue from operations in the 9M FY22 has been higher at 31.67 percent over 9M FY21. Gross Margins during the period at 43.18 percent against 48.64 percent in the corresponding period of the previous year (97M FY21).
However, with prudent price increases, stabilizing raw materials and favourable product mix, the gross margins have improved on a sequential basis from 41.72 percent in Q2 FY22 to 42.89 percent in Q3 FY22.
Also Read: Nykaa Q3 Results: Net profit surges to Rs 29 crore; revenue increases 24% to Rs 1,098 crore
The results came after the close of the market hours. Shares of Indigo Paints ended at Rs 1,926.00, down by Rs 10.20, or 0.53 percent on the BSE.
(Edited by : Jomy Jos Pullokaran)
First Published: Feb 11, 2022 5:14 PM IST
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