Pidilite Industries surges on robust Q1 earnings

Operating margin improved to 21% from 19.9% during the recently concluded quarter

Pidilite Industries has surged 6% to Rs 172  after reporting 22% year-on-year (y-o-y) growth in net profit at Rs 128 crore for the quarter ended June, 2012 on account of robust sales in all segments. On sequential basis, the net profit surged over 87% from Rs 71 crore in March quarter.

The adhesives and industrial chemicals manufacturer, reported 18% growth in consolidated income from operations at Rs 1,003 crore on y-o-y basis. Operating margin improved by almost 100 bps to 21% from 19.9% during the recently concluded quarter.

Meanwhile, the company said that it has entered into a joint venture (JV) agreement with Hybrid Coatings for manufacture of construction chemicals and to establish a joint venture company in India for this purpose. The stock opened at Rs 166 and hit a high of Rs 173 on the NSE. A combined 160,000 shares have changed hands on the counter in opening trades.