India's Indigo Paints Q2 profit more than doubles

Indigo Paints

03/11/2022 09:09

BENGALURU, Nov 3 (Reuters) - India's Indigo Paints
 INDG.NS  on Thursday reported a second-quarter profit that more
than doubled, as price hikes helped offset increasing costs of
raw materials.
    Net profit jumped 173.8% to 370.9 million Indian rupees 
($4.47 million) for the three months ended Sept. 30, from 135.5
million rupees a year earlier, the Pune-based company said in an
exchange filing.
    Larger rivals Asian Paints  ASPN.NS  and Kansai Nerolac
Paints  KANE.NS  have missed profit expectations for the latest
reported quarter due to a longer-than-usual rainy season, while
their margins took a hit from higher commodity prices.
    The company "clocked a strong growth in revenue with a sharp
uptick in profit metrics despite the extended monsoon season"
the Sequoia Capital-backed paint maker said in a statement. 
    Cost of raw materials climbed 20.3% to 1.46 billion rupees
in the quarter, pushing total expenses up 20.4%. 
    Revenue from operations rose 23.7% to 2.43 billion rupees.
    Shares of Indigo Paints have lost around half their value
since listing in February last year, vastly underperforming
peers during the same period.
($1 = 82.9050 Indian rupees)
 (Reporting by Yagnoseni Das in Bengaluru; Editing by Shailesh
Kuber)
 ((Yagnoseni.Das@thomsonreuters.com;))