Pidilite Industries jumps 4% on better-than-expected June quarter results

Pidilite Industries' shares surged up to 4.4 per cent to Rs 1,391 on the BSE on Friday after the company's June quarter result, released post market hours on Thursday, came beat Street expectations. The company reported consolidated net profit of Rs 15.82 crore for the quarter under review, as against profit of Rs 294.39 crore in Q1FY20.

It's EBITDA stood at Rs 66.37 crore in Q1FY21, down 85.04 per cent YoY from Rs 443.73 crore posted in Q1FY20. EBITDA margin for the first quarter of FY21 was at 7.56 per cent, down 14.44 per cent YoY, as against the same quarter last year.  

Analysts at Motilal Oswal Financial Services were expecting a net loss and pre-tax loss of Rs 81.1 crore each, while EBITDA loss was seen at Rs 63.6 crore. 

The specialty chemical firm posted consolidated net revenue at Rs 877.84 crore, which declined by 56.47 per cent on a yearly basis from Rs 2,016.62 crore in Q1FY20. Analysts at the brokergae had expected sales at Rs 710 crore. 

Further, the Consumer & Bazaar (C&B) segment’s revenues were down 55.4 per cent YoY to Rs 700 crore, with segmental EBIT declining 70.5 per cent YoY to Rs 130 crore. Segmental EBIT margins contracted by 950bp YoY to 18.6 per cent. The Business to Business (B2B) segment’s revenues declined by 59 per cent YoY to Rs 190 crore, with segmental margins down 2590bp YoY to -11.7 per cent. Overall gross margins expanded 210bp YoY to 53.5 per cent.  

"While April sales were completely impacted, partial recovery was seen in May and significant recovery in June. Recovery continued through July.The profitability of the business was aided by softer input costs as well as stringent cost-control measures undertaken across the organization... While near-term demand appears uncertain as a result of the ongoing pandemic and the resultant restrictions across various parts of the country, the company remains focused on restoring volumes and ensuring profitable growth," Bharat Puri, Managing Director of Pidilite

Industries said in a statement.

At 1:40 pm, the stock was quoting at Rs 1,383.55 crore, up 4.8 per cent on the BSE. In comparison, the S&P BSE Sensex was down 39 points, or 0.1 per cent, at 37,986 level.