Pidilite Industries

However, operating profit margin has improved from 14.13 per cent to 15.23 per cent. Net profit has increased marginally by 3.62 per cent to Rs 16.57 crore.

The reason for lower profitability is higher interest burden, depreciation and tax liability. Interest burden of the company increased by 29.28 per cent to Rs 16.16 crore. This may be due to the company's requirement for higher working capital on account of commissioning of expansion projects. The company has commissioned the second phase of synthetic resins in October 1996, and expanded the capacity of pigment plant from 840 tonne to 1,020 tonne. The company has also put up three wind mills of 230 KW each which have become operational since June 1996. Depreciation has increased considerably by 41.65 per cent to Rs 7.21 crore.

 

The earnings have shown a decline due to increase in equity from Rs 6.12 crore to Rs 12.24 crore on account of the bonus issue in 1995-96.

The stock has been on a downward trend in the last one month losing from Rs 210 to the current level of Rs 170.