Easing material costs to aid Pidilite margins, near-term pressures weigh

Upsides from current levels may be capped due to higher valuations

Pidilite Industries
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On the demand front, the company indicated that it is on the softer side with inflation impacting consumption

Ram Prasad Sahu Mumbai
Pidilite Industries posted a weak operating performance in the September quarter as it was weighed down by multiple headwinds. Though raw material costs have come down, there could be near term pressures on profitability given higher priced raw material stocks.

The company reported a 440 basis points y-o-y gross margin contraction in the September quarter as it was weighed down by rising cost of inputs, unfavourable currency and high cost inventory.

Raw material costs as a percentage of sales, according to the company, wwere up 436 basis points YoY and 74 bps sequentially. Improved product mix and pricing action helped

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First Published: Nov 22 2022 | 7:48 PM IST

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