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Updated January 23rd, 2024 at 19:50 IST

Pidilite Industries posts 68% jump in Q3 profit

Rising construction and infrastructure activity in the country drove demand for construction chemicals, which benefited companies like Pidilite.

Business Desk
Pidilite Industries Q3
Pidilite Industries Q3 | Image:Pidilite Industries
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Pidilite Industries Q3: Adhesive manufacturer Pidilite Industries on Tuesday, January 23, posted a 68 per cent jump in its third-quarter profit at Rs 510 crore, its biggest year-over-year growth in nine quarters, driven by sustained demand and easing costs.

The standout features include a noteworthy 10.4 per cent Year-on-Year (YoY) growth in Standalone Underlying Volume (UVG), a 51 per cent increase in Standalone EBITDA, and an impressive 76 per cent growth in Profit After Tax (PAT).

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The rising construction and infrastructure activity in the country drove demand for construction chemicals, which benefited industrial adhesives and chemical manufacturers like Pidilite.

On the consolidated front, net sales grew by 4 per cent to Rs 3,119 crore in Q3, and EBITDA before non-operating income increased by 50 per cent to Rs 742 crore. 

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Standalone net sales reached Rs 2,823 crore, growing by 5 per cent over the same quarter last year. Standalone EBITDA before non-operating income grew by 51 per cent to Rs 708 crore, and Standalone PBT recorded a 72 per cent growth at Rs 694 crore. Standalone PAT witnessed an impressive surge of 76 per cent to reach Rs 523 crore.

The remarkable UVG of 10.4 per cent was a driving force behind the quarter's revenue growth. Both Consumer and Bazaar (C&B) and business-to-business (B2B) segments witnessed double-digit UVG, with rural and small-town markets surpassing urban growth. Export demand also displayed strength with double-digit UVG.

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Standalone revenue for the quarter marked a 5 per cent growth, propelled by strong UVG across categories and geographies. The C&B segment exhibited a growth of 5.5 per cent, while the B2B segment grew by 4.6 per cent. Pricing adjustments were made to accommodate some moderation in input prices.

Gross Margins continued to expand, both sequentially and YoY, increasing by 1,191 bps over Q3 FY23 and 174 bps over Q2 FY24. EBITDA Margins improved by 776 bps over Q3 FY23 and 188 bps over Q2 FY24.

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Despite global economic uncertainties and inflation, international subsidiaries (excluding Pidilite USA Inc.) reported modest sales growth, with EBITDA doubling over Q3 FY23. Domestic subsidiaries also recorded robust sales growth with double-digit growth in both C&B and B2B segments.

Bharat Puri, Managing Director of Pidilite Industries Ltd, expressed optimism about market demand in the near term, emphasizing the company's commitment to delivering volume-led profitable growth through investments in brands, supply chain, digital infrastructure, innovation, and customer-facing initiatives.
 

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Published January 23rd, 2024 at 19:50 IST

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