Pidilite Industries' PAT dips 9% to Rs 2.35 bn in Q2, sales up 15%

Pidilite Industries Limited, a leading manufacturer of adhesives, sealants and construction chemicals, announced its financial results for the quarter and half year, which ended on September 30.

Net sales were recorded at Rs 17.48 billion, witnessing a 15 per cent growth over the same quarter last year. Comparable net sales for the half year stood at Rs 35.66 billion and grew by 20 per cent (excluding the sales of Cyclo Division of Pidilite USA Inc which was sold by Pidilite USA Inc in June 2017) over the same period last year.

EBITDA (Earnings before interest, tax, depreciation and amortisation) before non-operating income stood at Rs 3.70 billion and declined by 2 per cent over the same quarter last year, given the input cost led contraction in gross margins by over 3 per cent and higher A&SP spends. EBITDA for the half year stood at Rs 7.54 billion and grew by 8 per cent over the same period last year, given the input cost led contraction in gross margins by over 2 per cent and higher A&SP spends.

Profit after tax was recorded at Rs 2.31 billion declined by 9 per cent over the same quarter last year. For the half year, profit after tax was recorded at Rs 4.72 billion declined by 2 per cent over the same period last year. The higher decline in consolidated Profit after tax as compared to EBIDTA is primarily on account of elimination of inter-company dividend and effect of tax thereon, the company said.

In terms of standalone performance, net sales at Rs 15.09 billion grew by 12 per cent over the same quarter last year with underlying sales volume and mix growth of 10 per cent. This was driven by a 11 per cent growth in sales volume and mix of consumer and bazaar products and 5 per cent growth in sales volume and mix of industrial products. Comparable net sales for the half year stood at Rs 31.01 billion and grew by 17 per cent over the same period last year.

EBITDA before non-operating income stood at Rs 3.49 billion and declined by 6 per cent over the same quarter last year, given the input cost led contraction in gross margins by about 4 per cent and higher A&SP spends. EBITDA for the half year stood at Rs 708 crore and grew by 4 per cent over the same period last year given the input cost led contraction in gross margins by over 2 per cent and higher A&SP spends.

Profit after tax stood at Rs 2.45 billion and declined by 6 per cent over the same quarter last year. Profit after tax for the half year stood at Rs 5.12 billion and grew by 7 per cent over the same period last year.

"We have delivered another quarter and half year of double digit volume growth. However, a challenging cost environment as a result of crude oil inflation and the depreciating rupee has resulted in lower gross margins. We have initiated several cost reduction measures as well as taken some price increases to address this. Overall, we remain committed to our strategic agenda of delivering consistent, profitable volume led growth," said Bharat Puri, Managing Director, Pidilite Industries Ltd.