Pidilite Industries reports 11% consolidated net sales growth over same quarter last year

Pidilite Industries Limited, India's leading manufacturer of adhesives, sealants and construction chemicals on Wednesday announced its financial results for the quarter and for the year ended March 31, 2019.

Financial Performance

Consolidated Performance

Net sales at Rs 1,631 Cr grew by 11 per cent over the same quarter last year. Comparable* net sales for the financial year 2018-19 stood at Rs 7,035 Cr and grew by 17 per cent (excluding the sales of Cyclo Division of Pidilite USA Inc which was sold by Pidilite USA Inc in June 2017) over the previous financial year.

EBITDA before non-operating income stood at Rs 279 Cr and grew by 2 per cent over the same quarter last year, given the input cost led contraction in gross margins by 1.6 per cent. EBITDA for the financial year 2018-19 stood at Rs 1,376 Cr and grew by 2 per cent over the previous financial year given the input cost led contraction in gross margins by 3 per cent.

Profit after tax at Rs 237 Cr declined by 4 per cent over the same quarter last year. Exceptional items represent diminution/impairment in the value of investments made by subsidiaries for the quarter ended March 2019 amounting to Rs 11 Cr and for the full financial year Rs 18 Cr. Current tax for the quarter includes Rs 53 Cr (Rs 46 Cr in the previous year) being an excess provision of earlier years now written back. For the full financial year 2018-19, profit after tax at Rs 928 Cr declined by 4 per cent over the previous financial year.

Standalone Performance

Net sales at Rs 1,367 Cr grew by 8 per cent over the same quarter last year with underlying sales volume and mix growth of 2.5 per cent. This was driven by 4 per cent growth in sales volume and mix of consumer and bazaar products and negative 1 per cent growth in sales volume and mix of industrial products. Comparable* net sales for the financial year 2018-19 stood at Rs 6,048 Cr and grew by 15 per cent over the previous financial year with underlying sales volume and mix growth of 10 per cent. This was driven by a 12 per cent growth in sales volume and mix of consumer and bazaar products and 2 per cent growth in sales volume and mix of Industrial Products.

EBITDA before non-operating income stood at Rs 263 Cr and grew by 3 per cent over the same quarter last year given the input cost led contraction in gross margins by 2 per cent. EBITDA for the financial year 2018-19 stood at Rs 1,298 Cr largely flat over the previous financial year, given the input cost led contraction in gross margins by 3 per cent.

Profit after tax stood at Rs 243 Cr improved by 2 per cent over the same quarter last year. Current tax for the quarter includes Rs 53 Cr (Rs 46 Cr in the previous year) being an excess provision of earlier years now written back. Profit after tax for the full financial year 2018-19 stood at Rs 979 Cr grew by 3 per cent over the previous financial year.

*Reflecting accounting impact of GST (excise duty and net input taxes adjusted from sales of base twelve months).

Q4 2018-19:

"While this quarter has seen some moderation in growth as a result of slower near term market growth, we have delivered double-digit volume growth for the year. While gross margins have improved sequentially, they still remain below last year as a result of input cost inflation and rupee depreciation. We remain continuously optimistic in the medium term of delivering consistent, profitable volume led growth," said Bharat Puri, Managing Director, Pidilite Industries Ltd.

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