Indigo Paints Q3 Results Review - Operational Performance Missed Estimate: Dolat Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Dolat Capital Report.Indigo Paints Ltd.’s Q3 FY23 revenue and Ebitda was below our estimate. This was primarily due to extended monsoon and early festive season. Revenue growth in Q3 FY23 was ahead of Asian Paints Ltd. (up 1.3%) and Kansai Nerolac Paints Ltd. (up 0.9%). Revenue growth during the quarter from enamels and wood coating (up 14.6%) and primers and distempers (up 5.5%) was better compared to other segments.Despite offering aggressive trade discounts as a result of softening in raw material prices, gross margin expanded 90 bps to 43.8%. However, Ebitda margin contracted 10 bps led by higher employee cost, better compared to Berger Paints India Ltd (down 240 bps) and Kansai Nerolac (down 100 bps). Indigo’s Q3 revenue, Ebitda and adjusted profit after tax performance was below our estimate. To adjust this, we have downward revised our FY23/24/25E estimates to Rs 24.2/28.7/37.3 representing 15/16/9% revision..Click on the attachment to read the full report:.Berger Paints - Transitory Issues Impacted Q3; Cyclical Challenges Emerge For FY24: ICICI Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Indigo Paints Q3 Results Review - Operational Performance Missed Estimate: Dolat Capital

Revenue, Ebitda was below our estimate primarily due to extended monsoon and early festive season.

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