The price of IndiGo Paints' shares jumped by 13 percent on the stock market on November 3, shortly after the company posted a net profit of Rs 37.1 crore for the second quarter of the fiscal year 2022-23 (Q2FY23).
The company's net profit grew by over 274 percent on-year, as against Rs 13.5 crore reported in the corresponding quarter of last year.
Revenue during Q2 FY23 came in at Rs 242.6 crore, which was 23.7 percent higher as compared to Rs 1,96.1 crore clocked in Q2FY22.
After the quarterly results were out, the stock climbed to up to Rs 1,900 per share at the BSE at around 3 pm, which was about 13 percent higher as compared to the previous day's close. At the closing bell, however, it settled at Rs 1,589, which was nine percent higher than the last closing price.
IndiGo Paints' earnings before interest, taxes, depreciation, and amortisation or EBITDA was up by 44.4 percent at Rs 33.7 crore in Q2, as compared to Rs 3.4 crore reported in the year-ago period.
The company, which started in the year 2000, has focused on small towns so far in its growth story, unlike its peers that target metros and larger cities. It, however, is now pivoting its strategy to expand the market share in the larger towns, Indigo Paint’s Chairman and Managing Director Hemant Jalan said in July.
“We are making that pivot now. Strategy can never be something constant in the entire length of a company's journey. It needs to be tweaked every now and then. So now, the attention is shifting away to the larger cities than the ones that we had been servicing up till now,” Jalan had said.
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