Pidilite Industries Q1 results: Fevicol maker meets analysts' estimates with 32% jump in net profit

Consumer and industrial specialty chemicals maker Pidilite Industries — whose popular brands include Fevicol, Dr Fixit and M-Seal — reported a jump of 32.4 per cent in quarterly net profit.

Pidilite Industries owns the adhesive brand Fevicol. | Image: Pidilite.com

Pidilite Industries — a manufacturer of consumer and industrial specialty chemicals — on Thursday reported a consolidated net profit of Rs 468.2 crore for the April-June period, in line with analysts' estimates. The quarterly net profit of the Mumbai-based company — whose popular brands include Fevicol, Dr Fixit and M-Seal — increased 32.4 per cent compared with the corresponding period a year ago.

The company's revenue came in at Rs 3,275.1 crore for the first quarter of the current financial year, as against Rs 3,101.1 crore for the year-ago period, according to a regulatory filing.

Pidilite said the revenue was underpinned by strong growth in volumes.

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Pidilite's margin — a key measure of a company's profitability — improved to 21.6 per cent for the June quarter from 17 per cent a year ago.

According to Zee Business research, Pidilite's net profit for the three-month period was estimated at Rs 465 crore, revenue at Rs 3,383 crore and margin at 21 per cent.

"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. Part of this was reinvested in our brands and growth facing initiatives," said Bharat Puri, Managing Director at Pidilite Industries.

The company's cost of material consumed eased 12.7 per cent on a year-on-year basis to Rs 1,366.1 crore.

"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," Puri added.

Revenue from its Consumer & Bazaar business, accounting for 72.5 per cent of its overall revenue, increased 9.2 per cent on a year-on-year basis to Rs 2,660.9 crore, according to the filing. Revenue from its business-to-business (B2B) unit declined 6.1 per cent to Rs 678 crore.

Pidilite shares continued to struggle below the flatline after the earnings announcement, falling by as much as Rs 84.8 or 3.3 per cent to Rs 2,520 apiece on BSE.

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