Indigo Paints Announces Q1 FY25 Results: Mixed Performance with Growing Cash Flow and Concerns

Indigo Paints, a midcap company in the paints industry, recently announced its financial results for the quarter ending March 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financial report, Indigo Paints has seen a flat performance in the quarter, with a score of -3 compared to 15 in the previous quarter. However, there are some positive aspects to the company’s financials. The operating cash flow has been consistently growing over the last three years, with the highest annual amount of Rs 152.10 crore. This indicates that the company has been able to generate higher cash revenues from its business operations.

On the other hand, there are some areas of concern for Indigo Paints. The profit before tax (PBT) has fallen by -31.7% compared to the average of the previous four quarters. This trend is expected to continue in the near term. Similarly, the profit after tax (PAT) has also fallen by -28.9% compared to the average of the previous four quarters. This negative trend is a cause for concern.

Another point to note is the non-operating income, which has been the highest in the last five quarters. This increase in income from non-business activities may not be sustainable in the long run.

Overall, Indigo Paints has shown a mixed performance in the quarter ending March 2024. Investors are advised to hold their positions and monitor the company’s financials closely.