Pidilite Industries Q1 Results: Net profit jumps 32% to ₹474 crore; revenue rises 5.6% YoY

Pidilite Industries, the adhesives manufacturer, on Thursday reported a strong growth of 31.5% in its net profit for the quarter ended June 2023 at ₹473.7 crore from ₹357.5 crore in the year-ago period.

The company’s consolidated revenue in Q1FY24 rose 5.6% to ₹3,275.1 crore from ₹3,101.1 crore, YoY.

On a standalone basis, net sales at ₹2,952 crore grew by 6% over the same quarter last year. The underlying volume growth of the company was 8%.

“Consolidated revenue growth was also driven by strong volume growth. Consumer & Bazar Segment (C&B) grew by 9% with Domestic C&B business registering double digit revenue and Underlying Volume Growth. Business to Business segment (B2B) registered single digit revenue decline, largely due to lower exports and lower demand from export-oriented industries,” Pidilite Industries said in a release.

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Operating performance of the company, whose popular brands include Fevicol, M-Seal and Dr Fixit, improved during the quarter. Its earnings before interest, taxes, depreciation and amortization (EBITDA) increased 33.5% to ₹706.8 crore from 529.5 crore in the same quarter of last year.

EBITDA margin also expanded by 450 basis points (bps) to 21.6% from 17.1%, YoY.

Gross Margins continued to expand both sequentially and year on year, by 260 bps and by 812 bps respectively, mainly on account of moderation in input prices along with operational efficiencies.

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“We started the year on a strong note with our domestic consumer businesses delivering robust volume growths. B2B, exports and international business continued to face sluggish demand conditions. A combination of moderating input prices and operational efficiencies saw our gross margins improve substantially,” said Bharat Puri, Managing Director, Pidilite Industries.

Looking ahead, growths will largely be volume led. A good monsoon, increased construction activity and stable input prices enable us to look at the future with increased optimism, he added.

On Thursday, Pidilite Industries share price ended 3.25% lower at ₹2,520.15 apiece on the BSE.