In another development, the company's net revenue from operations for Q1 FY21 was Rs. 156.02 crore against Rs. 104.58 crore in Q1 FY20 representing an increase of 49.19% over the corresponding period of the preceding year.

EBITDA (excluding other income) for the quarter ended June 30, 2021 was Rs. 20.16 crore against Rs. 19 crore in the corresponding quarter of the last year representing an increase of 6.10% over the corresponding period of last year.

Net profit for the quarter ended June 30, 2021 was Rs. 11.61 crore against Rs. 8.40 crore in the corresponding quarter of last year representing an increase of 38.20% over the corresponding period of last year.

Despite localised lockdowns and restrictions imposed for the better part of April - May 2021, Indigo Paints has not only grown by 49.19% over the same period of the preceding year but also clocked a higher growth over Q1 FY20. Also, despite higher raw material prices, the gross margin expanded by over 1% (over Q1 FY21) due to proactive and staggered price hikes affected by the company.

The EBITDA margins (12.92%) and the PAT margins (7.30%) were primarily impacted due to the higher brand building initiatives undertaken by the company during IPL in April. The company had spent Rs. 15.70 crore on Advertisements and Promotions (A&P) in Q1 FY22 versus Rs. 2.56 crore in Q1 FY21. Despite the higher spends on A&P, the PAT has grown by over 38.20% due to prudent cost control and efficiency enhancements measures undertaken by the company.