Pidilite Industries share price plummets in morning trade as Q4 PAT misses Street estimates

Pidilite Industries experienced a rough start to the day, trading on Dalal Street with a 1.01% negative gap at ₹2426.80 per share after starting the day at ₹2451. This negative trend was experienced by the market watcher after Pidilite Industries fails to meet street estimates in terms of Q4 earnings.

The company’s consolidated revenue from operations stood at ₹2689.25 Cr during the quarter ended March 2023 up by 7.26% YoY from ₹2507.10 Cr recorded during the quarter ended March 2022. The company said its consolidated net income reached ₹2712.07 Cr during Q4FY23 up by 7.70% YoY from ₹2518.21 Cr during Q4FY22.

The net profit of Pidilite Industries stood at ₹392.62 Cr during the quarter under review up by 13.49% YoY from ₹345.87 Cr reported in the year-ago quarter. EBITDA, before non-operating income, grew by 7% from the prior year to ₹1,984 Cr. EBITDA increased by 14% over the same quarter previous year to ₹459 Cr at the conclusion of the current quarter.

“The Board of Directors have recommended a Dividend of ₹11/- (Rupees Eleven Only) per equity share of Re.1/- each for the financial year ended 31st March, 2023. Subject to the approval of the shareholders at the 54th Annual General Meeting, the dividend will be paid to the shareholders within a period of 30 days from the date of the 54th Annual General Meeting,” said Pidilite Industries in a stock exchange filing.

“We would like to inform you that Pidilite USA Inc, a wholly owned subsidiary of the Company has decided to discontinue the operations of the Sargent Art Division, in a phased manner, over the next year. Revenue from operations and profit/(loss) before tax pertaining to Sargent Art Division for the year ended 31st March, 2023 is 128.8 crores and Rs. (5.2 crores) respectively,” said Pidilite Industries in a stock exchange filing.

Commenting on the results, Mr. Bharat Puri, Managing Director, Pidilite Industries Ltd, said: "Despite the challenging environment on both the demand as well as input cost fronts throughout the year, we have delivered broad-based, robust value and volume growth across our businesses in geographies with revenue crossing Rs. 11,000 crores for the first time. The current quarter's revenue growth is primarily driven by domestic demand. Gross margin improved during the quarter enabled by the easing of input prices. This enabled us to reinvest in our brands as well as route to market. While the near-term environment is likely to remain uncertain, we look forward to the future with cautious optimism. The moderation in input costs, easing of inflation and the growth in infrastructure and construction should enable us to deliver volume lead profitable growth. We remain committed to delivering broad-based consistent volume growth while continuing to invest in our brands, building capabilities across the digital landscape as well as building a resilient and future ready supply chain."