MicroCap Paint Stock Posts 4.5 Per Cent Decline in PAT, Sales Down 3.2 Per Cent
The company’s net profit (PAT) dropped 4.5 per cent YoY to Rs 35.9 crore, against Rs 37.6 crore in the previous year.
One of the leading decorative paint manufacturer in India, Indigo Paints Ltd reported a subdued financial performance for Q3 FY25, with a decline in revenue and profitability. Margin compression and weak volume growth in key product categories impacted the company's overall earnings.
Financial Performance
The company’s revenue declined by 3.2 per cent YoY to Rs 342.6 crore, compared to Rs 353.8 crore in Q3 FY24.
EBITDA fell 8.1 per cent YoY to Rs 57.2 crore, down from Rs 62.2 crore in the same quarter last year. The EBITDA margin contracted by 90 basis points, standing at 16.7 per cent, compared to Q3 FY24.
The company’s net profit (PAT) dropped 4.5 per cent YoY to Rs 35.9 crore, against Rs 37.6 crore in the previous year. The PAT margin for the quarter stood at 10.4 per cent.
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Product Category Snapshot
- Putty & Cement Paints: Revenue declined 5.3 per cent, while volume dropped 7.2 per cent.
- Emulsions: Grew 2.8 per cent in value and 1.7 per cent in volume.
- Enamels & Wood Coatings: Witnessed a sharp 11.5 per cent decline in revenue and 12.6 per cent drop in volume.
- Primers, Distempers & Others: Revenue remained largely stable with a 0.6 per cent dip, while volume declined 6.0 per cent.
Stock Price Performance
The stock has been under pressure, declining 13.93 per cent over the past year, significantly underperforming the Nifty 50, which gained 7.62 per cent in the same period. Over the last three years, the stock has delivered negative 36.41 per cent returns.
The company currently has a market capitalization of Rs 5,990 crore.
About the Company
The company is a pioneer in India’s decorative paint industry, known for introducing category-creator products like Metallic Emulsions and Tile Coat Emulsions. Its diverse product portfolio includes Emulsions, Enamels, Wood Coatings, Primers, Distempers, Cement Paints, and Putties.
Disclaimer: This article is for informational purposes only and not investment advice.