Pidilite Industries gains 4% on good Q1 results, stock hits all-time high

Shares of Pidilite Industries hit an all-time high of Rs 1,324, up 4 per cent intra-day on the BSE on Tuesday after the company reported a better-than-expected 22 per cent jump in consolidated net profit at Rs 294 crore in June quarter (Q1FY20), on strong volume growth. The company had a profit of Rs 241 crore in the year-ago quarter.

Operational revenue during the quarter grew 11 per cent year-on-year (YoY) at Rs 1,768 crore over the same quarter last year with underlying sales volume & mix growth of 6 per cent. EBITDA (earnings before interest, tax, depreciation and amortization) margin improved 120bps to 22 per cent from 20.8 per cent in previous year quarter.

Analysts, on an average, had expected profit of Rs 282 crore, revenue of Rs 1,925 crore and volume growth of around 2-3 per cent for the quarter.

The management remains cautiously optimistic in the medium term of delivering consistent, profitable volume-led growth.

"Despite challenging demand conditions, we have delivered resilient performance driven by consumer franchise expansion in rural areas, earlier pricing actions and moderation in input costs,” Bharat Puri, Managing Director, Pidilite Industries said.

At 02:48 pm, Pidilite Industries was up 3 per cent at Rs 1,308 on the BSE, as compared to 1.2 per cent rise in the S&P BSE Sensex. The trading volumes on the counter nearly tripled with a combined 1.68 million shares changing hands on the NSE and BSE so far. The stock surpassed its previous high of Rs 1,311 touched on April 15, 2019 in intra-day deal.