Fevicol

Adhesives and construction chemicals maker Pidilite Industries expects consumer demand to remain resilient despite inflationary pressures and does not see an immediate need for further price increases in the current quarter, Managing Director Sudhanshu Vats has said. The company, which took price increases of up to 12 per cent in tranches in the June quarter to offset the spike in crude prices triggered by the West Asia crisis, does not foresee the need for any fresh price hikes in the current quarter amid easing volatility, even as it remains watchful of the commodity's trajectory. Pidilite sees demand trends in July and August broadly in line with the June quarter, with overall consumer sentiment in India remaining "reasonably robust", Managing Director Sudhanshu Vats told PTI. "If you look at Q1 demand, demand in Q2 as well, as we travel and qualitatively see, is broadly holding," Vats said, adding that he was pleasantly surprised by the resilience in overall consumer sentiment .

Strong revenue growth and lower fixed-cost inflation aided the June quarter, but higher VAM prices are expected to push operating margins towards the guided 20-24 per cent range

Adhesives and construction chemicals maker Pidilite Industries is considering another round of price hike due to inflation in raw materials from the ongoing geopolitical tensions in West Asia, the company's Managing Director, Sudhanshu Vats, said. The company, which owns popular brands such as Fevicol, Dr Fixit, FeviKwik and M-Seal, had announced a price hike in April, followed by a second round in May. The company's raw material basket, which is closely linked to crude derivatives, has seen a weighted-average increase of around 40-50 per cent due to geopolitical tensions in West Asia, Vats said. "The West Asia crisis, like for many other businesses, has had an impact on our business as well. It came towards the end of the quarter. So therefore, we were able to manage a bit of it, and I think it did not reflect in the numbers, but I think moving forward, our raw material prices have gone up indeed," said Vats in a post-earnings briefing. In line with its philosophy, Pidilite will l

High stock valuation is another hurdle for the manufacturer of adhesives and construction chemicals

Rural and semi-urban markets are growing 1.5 times faster than the urban market for Pidilite Industries, helping it register a double-digit volume growth and it sees positive demand environment in the last quarter also, says its Managing Director Bharat Puri. The company achieved a double-digit volume growth in the first three-quarters of FY24 and Puri expects to continue the momentum with a broad-based growth across categories. "We see a good demand environment, government spending on infrastructure, the housing sector and real estate is seeing an upsurge. So, overall we remain optimistic about the overall prospects of our sector," said Puri in a virtual media roundtable. Pidilite, which passed on the benefits of lower-cost prices to consumers, does not see any disruption in the supply chain from the geopolitical crisis, which is brewing in the Middle East. "Fortunately for us, most of our raw material comes from the East rather than from via the Red Sea. Right now, raw material

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