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India's Pidilite Industries, maker of adhesive brand Fevicol, reported a more than 32% rise in first-quarter profit on Thursday, aided by strong demand and reduced input costs.
The company's consolidated net profit rose to 4.68 billion rupees ($56.53 million) for the three months ended June 30, it said in an exchange filing.
Consolidated revenue from operations rose nearly 6% to 32.75 billion rupees.
The company, also known for its waterproofing product Dr. Fixit and paper-to-paper sticking adhesive Fevistik, said raw material costs dropped nearly 13% to 13.66 billion rupees.
"Rural markets continued to grow faster, signalling a gradual recovery in the rural economy. However, export of consumer and bazaar products declined due to challenging demand conditions in the overseas markets," the company said in a statement.
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The consumer and bazaar segment, which sells adhesives, craft materials and construction and paint chemicals to retail users, and accounts for over 80% of Pidilite's revenue, posted revenue growth of more than 9%.
"A combination of moderating input prices and operational efficiencies saw our gross margins improve substantially," said Managing Director Bharat Puri.
Pidilite's shares rose 10.4% during the quarter.
($1 = 82.7920 Indian rupees)
(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Sohini Goswami)
