Indigo Paints Q1 Review - Sequential Gross Margin Improvement Continues: Motilal Oswal


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Indigo Paints Ltd. reported an in line set of earnings at the sales and gross profit level. While Ebitda margin appeared to be below our estimate, this was largely due to the bifurcation of IPL ad spends over two quarters in FY22, as the league was played in two phases, unlike the full impact being seen in Q1 FY23.

Sales and margin are expected to improve in subsequent quarters.

While it is too early to comment on the potential impact of Indigo Paints’ newfound aggression on tier I and II centers (announced only in Q4 FY22), a potential recovery in rural India augurs well for their erstwhile core regions.

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