Q1 2025 Indigo Paints Ltd Earnings Call Transcript
Key Points
- Indigo Paints Ltd (BOM:543258) reported industry-leading growth for the fifth consecutive quarter with a top-line growth of 7.8% despite subdued market conditions.
- The company maintained a strong gross margin of 47.0%, which is significantly higher than other major paint players.
- Apple Chemie, a subsidiary of Indigo Paints Ltd (BOM:543258), registered a robust growth of about 47% year-on-year and received NABL accreditation for its laboratory.
- The company has expanded its active dealer base to about 18,500 and increased its tinting machine population to 10,210 as of June 30, 2024.
- Indigo Paints Ltd (BOM:543258) has extended its ESG initiatives, including electrical vehicle last-mile delivery services in three more states and targeting the installation of one megawatt of renewable energy via rooftop solar installations.
- The company's EBITDA decreased marginally by 4.1% from INR47.7 crores in Q1 of last year to INR45.8 crores in Q1 of this year.
- The EBITDA margin reduced from 17.2% last year to 15.6% in Q1 of FY25, largely due to a sharp increase in employee costs by around 23% to 24% year-on-year.
- The PAT decreased from INR31.3 crores in Q1 of last year to INR26.5 crores in Q1 of this year, primarily due to additional depreciation charges from the commissioning of the Tamil Nadu plant.
- The Kerala market, a significant contributor to the company's top line, showed negative growth, impacting overall growth rates.
- The company experienced a slight reduction in gross margin from 47.6% in Q1 of FY24 to 47.0% in Q1 of FY25 due to price cuts, elevated channel discounts, and a temporary spike in certain raw material prices.
Ladies and gentlemen, good day, and welcome to Indigo Paints Q1 FY 20 conference call on hosted by ICICI Securities. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. (Operator Instructions) Please note that this conference is being recorded.
And 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 morning, afternoon, evening, depending on the part of the world you are joining this call from. Representing I-Sec it's our pleasure and privilege to host Indigo Paints Management once again for the results conference call.
Before I hand over to the management, I just want to highlight that we have upgraded the stock to an add from hold today morning, and as it stands right now, out of the five paint stocks we cover, we have an add rating on AkzoNobel, Indigo and Kansai. Our negative stance on reduced rating
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