Q4 2024 Indigo Paints Ltd Earnings Call Transcript
Key Points
- Indigo Paints Ltd (BOM:543258) reported a top-line growth of over 18% for Q4 FY24, significantly outperforming the industry average of less than 1%.
- The company achieved the highest gross margin in its history at 49.3% for the quarter, indicating strong profitability.
- EBITDA for Q4 FY24 increased by 14.7% to INR82.3 crore, with an EBITDA margin of 22.5%, up from 22.0% in the same quarter last year.
- PAT for Q4 FY24 rose by 10% to INR53.5 crore, despite higher depreciation costs due to a new plant in Tamil Nadu.
- Indigo Paints Ltd (BOM:543258) continues to expand its dealer network, now boasting over 18,000 active dealers and nearly 10,000 tinting machines as of March 31, 2024.
- The PAT margin for Q4 FY24 slightly decreased from 14.8% to 14.5% due to higher depreciation from the new plant.
- The company faces intense competition from established players like Asian Paints, Berger Paints, and new entrants such as Birla Opus.
- Despite strong growth, the company's market share in premium and luxury segments remains lower compared to industry leaders.
- The freight cost remains a challenge, constituting 8-9% of sales, with limited scope for significant reduction.
- The company's A&P spend as a percentage of revenue decreased from 7.7% in FY23 to 7.4% in FY24, but there are plans to increase digital media spending, which may impact future margins.
Ladies and gentlemen, good day, and welcome to Indigo Paints Q4 FY24 results conference call hosted by ICICI Securities. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Manoj Menon from ICICI Securities. Thank you, and over to you, sir.
Hi, everyone. It's a wonderful good morning, good afternoon, good evening, depending on the part of the world you are joining this conference call from. As always, it's our absolute pleasure at ICICI Securities to host the management of Indigo Paints for the results conference call. Over to Srihari from the company for the intro of the participants and the further proceedings. Thank you.
Yeah. Thanks, Manoj. Good afternoon, everyone. Thanks for joining our earnings call for the year ended FY24. We have uploaded the refreshed investor presentation, along with the disclaimer in the websites of the stock exchanges as
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