Pidilite reports weak Q1 result

Pidilite Industries reported 90.86% drop in consolidated net profit to Rs 26.78 crore on 56.32% fall in total income to Rs 898.31 crore in Q1 June 2020 over Q1 June 2019.

Consolidated EBITDA before non-operating income in Q1 June 2020 stood at Rs 67 crore, registering a decline of 85% over the same quarter last year. Consolidated profit before tax stood came at Rs 31.67 crore in Q1 June 2020, significantly lower than Rs 438.81 crore posted in the same period last year.

Shares of Pidilite Industries are trading 1.96% higher at Rs 1,358 on BSE.

Pidilite said Q1 performance was significantly impacted by continued lockdowns due to the pandemic. On an overall basis, the company had a near complete closure in April 2020 with recovery from May 2020 onwards (broadly 50% of outlets being open) and June (saw broadly 80% of outlets open). The recovery has continued in July.

As a result of periodic restrictions, the company's plants are operating at a capacity utilization of 75% to 80% and operating efficiencies of warehouses have been impacted on and off, Pidilite said.

Commenting on the quarter performance, Bharat Puri, Managing Director, Pidilite Industries said, Q1 June 2020 performance was significantly impacted by the lockdowns as a result of the pandemic. The profitability of the business was helped by softer input costs as well as stringent cost control measures undertaken across the organisation. While near term demand appears uncertain as a result of the continuing pandemic and the resultant restrictions across several parts of the country, the company remains focused on restoring volumes and ensuring profitable growth.

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

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