Pidilite Industries on Wednesday reported a decline of 10.06 per cent in consolidated net profit at Rs 337.75 crore for the second quarter of FY23 on account of raw material inflation and high-priced inventory.
The company, which manufactures adhesives, sealants and construction chemicals, had logged a profit of Rs 375.53 crore in the July-September quarter a year ago.
Revenue from operations was up 14.65 per cent at Rs 3,011.15 crore during the quarter under review as against Rs 2,626.35 crore in the year-ago period, Pidilite Industries said in a regulatory filing.
"Margins continue to be impacted owing to raw material inflation, a weaker currency and high-priced inventory. Selective pricing action along with mix enrichment helped to maintain gross margins sequentially," said Pidilite in an earnings statement.
Control in costs below gross margin enabled to maintain EBITDA margin at the same level as previous quarters, it added.
Pidilite's total expenses were at Rs 2,586.60 crore, up 20.33 per cent.
Pidilite Industries may not raise prices as raw material cost moderates
Pidilite Industries Q1 profit up 64% at Rs 358 cr; revenue jumps 60%
Pidilite Industries stock gains on sales growth, margin recovery hopes
Home-builder BuildNext raises $3.5 mn in funding round led by Pidilite
ITR 2021-22: How to e-verify income tax return to complete filing process
IFCI posts Rs 209 cr Q2 profit, interest income declines to Rs 110 cr
Shriram Life Insurance Company posts net profit of Rs 75 crore in H1FY23
Sundram Fasteners Q2 net dips to Rs 111 cr, income grows to Rs 1,225 cr
Gateway Distriparks Q2 PAT up 27% to Rs 60 cr, revenue rises to Rs 361 cr
Bajaj Consumer Care Q2 net dips 32% to Rs 32 cr, revenue up 8% to Rs 232 cr
Its revenue from the 'consumer & bazaar' segment was up 14.13 per cent at Rs 2,431.49 crore in July-September 2022 as against Rs 2,130.42 crore in the corresponding quarter a year ago.
Revenue from the business-to-business segment was at Rs 623.72 crore, up 17.15 per cent in the September quarter of FY23 as against Rs 532.38 crore a year ago.
Pidilite Industries managing director Bharat Puri said: "This quarter saw input costs at an all-time high. Despite this, we were able to maintain our margins sequentially through calibrated pricing and effective cost management actions."
"While demand conditions remained soft, with inflation impacting consumption, we remain cautiously optimistic on improving demand conditions, thanks to the good monsoon as well as increased construction activity," he added.
Over the outlook, he said softening of commodity cost will sequentially improve profitability.
"As an organisation, we continue to invest in our brands, supply chain, digital infrastructure, and distribution to deliver consistent volume-led profitable growth," he added.
Shares of Pidilite Industries settled at Rs 2,650.40 apiece, up 0.66 per cent on the BSE.