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EBIDTA (excluding other income) for the quarter ended 31 March 2021 stood at Rs 42.94 crore as against Rs 46.61 crore in the corresponding quarter of the last year, representing a decrease of 7.9% over the corresponding period of last year. In the quarter ended 31 March 2021, the margins were affected due to the continued and unprecedented spike in the cost of the raw materials. The net profit for the quarter was impacted (by Rs 4.05 crore reduction) due to the change in the IT Act pertaining to the deduction of Goodwill. During the quarter, Indigo Paints went for an IPO, which was well received by the investors and was oversubscribed by 117.02 times. Subsequently, the company got listed on 2 February 2021. Also, in line with the objects of the issue, the firm has prepaid the outstanding term loans (from the proceeds of the IPO and internal accruals) and is now a debt free company. Due to severe impact in April 2021 as a result of nationwide lockdown, manufacturing facilities resumed operations in end-April 2021. However, the company made a strong bounce-back in sales from May 2020, as smaller towns were less impacted by COVID-19. There was no impact on cash-flows of the company and there were no layoffs of any employee during the period under preview. The sales outlook is very uncertain in near-term. However, the firm is confident of sharp recovery once lockdowns are lifted. It expects to continue to outperform industry growth figures and accelerate expansion of dealer network and tinting machines. The RM prices have started moderating in Q1, and another round of price increase has been affected from 1 May. The gross margins are expected to improve soon. Indigo Paints will continue to increase media advertising soends, although advertising & promotion expense as percentage of revenues can be expected to continue to decline, having positive impact on EBITDA margin. As in past, company will continue to keep tight control on costs, it said. Indigo Paints offers a wide range of interior & exterior wall paint colours, enamels & wood coatings for homes & offices. Powered by Capital Market - Live News
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