Pidilite Industries reports consolidated comparable net sales growth of 20%; domestic volume growth at 13%

Pidilite Industries Limited, India's leading manufacturer of adhesives, sealants and construction chemicals today announced its financial results for the quarter and year ended March 31, 2018.

The Board of Directors has recommended a Dividend of Rs. 6 per equity share of Re. 1/- each for the financial year ended 31st March, 2018 (as compared to Rs 4.75 per equity share for the previous financial year).

FINANCIAL PERFORMANCE

Consolidated Performance

• On a comparable basis*, net sales at Rs 1,473 Cr grew by 20% (excluding sales of Cyclo division of Pidilite USA Inc., which was sold by Pidilite USA Inc. in June, 2017) over the same quarter last year. Full year net sales stood at Rs 5,989 Cr and grew by 12% (excluding sales of Cyclo division) over the previous financial year.

• EBITDA, before non-operating income, stood at Rs 274 Cr for the quarter and grew by 5% over the same quarter last year given the input cost led contraction in gross margins by 0.7% and higher A&SP spends in this quarter. EBITDA for the financial year 2017-18 stood at Rs 1,344 Cr and grew by 6% over the previous financial year on the back of input cost led contraction in gross margins by 0.6%.

• Profit after tax at Rs 248 Cr grew by 57% over the same quarter last year. Current tax for the fourth quarter of FY 2017-18 includes Rs 46 Cr being excess provision of earlier years now written back. For the full financial year 2017-18, profit after tax was Rs 966 Cr recording a growth of 12% over the previous financial year.

Standalone Performance

• On a comparable basis*, net sales at Rs 1,261 Cr grew by 15% over the same quarter last year with underlying sales volume & mix growth at 13%. This was driven by a 13% growth in sales volume & mix of Consumer & Bazaar products and 14% growth in sales volume & mix of Industrial Products. Net sales for the financial year 2017-18 was Rs 5,281 Cr and grew by 12% over the previous financial year.

• EBITDA, before non-operating income stood at Rs 255 Cr and was largely flat over the same quarter last year given the input cost led contraction in gross margins by 1% and A&SP cost increases. EBITDA for the financial year 2017-18 was Rs 1,294 Cr and grew by 5% over the previous financial year on the back of input cost led contraction in gross margins by 1% and A&SP cost increases.

• Profit after tax at Rs 238 Cr grew by 235% over the same quarter last year. Current tax for the fourth quarter of FY 2017-18 includes Rs 46 Cr being excess provision of earlier years now written back. Profit for the fourth quarter of FY 2016-17 is after providing for exceptional items aggregating to Rs 94 Cr related to impairment of the Company's investment in subsidiaries. Profit after tax for the financial year 2017-18 was Rs 955 Cr and grew by 23% over the previous financial year.

*Reflecting accounting impact of GST for the quarter and the full year.

MD COMMENTS

"Gradually improving demand conditions led to another quarter of double digit volume growth. While commodity cost inflation as a result of rising input prices and currency headwinds is a concern, we remain focused on delivering steady volume driven growth," said MD, Pidilite Industries Ltd, Bharat Puri.