 "Pidilite Industries Q3 results: Net profit at Rs 552 crore, revenue up 7.6%")
Pidilite Industries on Wednesday reported third-quarter profit below estimates, due to weak urban and rural demand for adhesives and sealants.
The company reported a consolidated net profit of Rs 552 crore ($64 million) for the three months ended Dec. 31, compared to analysts' expectation of Rs 591 crore, according to data compiled by LSEG.
Construction-related demand remained subdued across India due to pollution restrictions, a lack of new infrastructure projects and delayed spending, analysts had noted.
The adhesives and sealants maker, known for brands such as Fevicol and Dr. Fixit, reported a 7.6 per cent increase in revenue to Rs 3,369 crore, missing expectations of Rs 3,399 crore.
Revenue in the consumer and bazaar segment, which accounts for about 80 per cent of Pidilite's revenue, grew 5.2 per cent, while the business-to-business segment rose about 19 per cent.
"Despite subdued demand across urban and rural geographies, we continued to make steady progress, with robust revenue and underlying volume growth and healthy levels of profitability," the company's Managing Director Bharat Puri said in an earnings release.
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Pidilite's earnings before interest, taxes, depreciation, and amortization grew 8 per cent from a year ago, while sales volumes rose 9.7 per cent.
The company said it is cautiously optimistic on improved demand conditions as a result of the good monsoon and increased construction activities.