Pidilite Industries gains after decent Q2 performance

Pidilite Industries rose 3.58% to Rs 2450.30 after the adhesives maker recorded 5% rise in consolidated net profit to Rs 376 crore on a 41% increase in net sales to Rs 2,613 crore in Q2 FY22 over Q2 FY21.

EBITDA before non-operating income in the second quarter was at Rs 550 crore, up by 7% over the same quarter last year. Profit before tax and exceptional items (PBT) in Q2 FY22 was at Rs 492 crore, higher by 3% as compared with the same quarter last year.

Pidilite said that the quarter gone by recorded very strong sales volume and value growth. The business witnessed much improved consumer demand environment due to accelerated vaccinations, reduced COVID infections and increased mobility.

Growth was broad based across Consumer and Bazaar (C&B) and Business to Business (B2B) segments as well as urban and rural geographies. C&B reported growth across all categories such as adhesives, construction chemicals and DIY portfolio. B2B growth led by continued momentum in industrial activities.

Gross Margins have contracted on account of sharp escalation and volatility in input costs. Calibrated pricing actions and a focus on costs and operational efficiencies have led to maintainenance of EBITDA margins in the historic range.

While domestic subsidiaries in C&B business returned to double digit growth led by higher sales in premium products, subsidiaries in B2B business have improved sequentially on account of recovery in real estate and construction related activities.

Bharat Puri, managing director, Pidilite Industries, said: This quarter, we have delivered very strong value and volume growth across categories, businesses, and geographies. Overall, we witnessed significant improvement in demand conditions across categories and geographies.

However, unprecedented increases and volatility in input costs has been a major challenge. In this environment, moderated price increases as well as a sharp focus on operational efficiencies have helped us navigate the uncertain environment.

Going forward we remain cautiously optimistic on continuing robust demand conditions. Unabated commodity inflation and supply availability remains a significant challenge and would require continued focus.

Separately, the company informed that Pradip Menon, chief financial officer (CFO) has given notice of resignation from the services of the company. He will continue in his current position as CFO until the close of business hours of 20 December 2021.

Pidilite Industries is a manufacturer of adhesives and sealants, construction chemicals, craftsmen products, DIY (Do-It-Yourself) products and polymer emulsions in India.

Powered by Capital Market - Live News