Pidilite Industries consolidated PAT declines 20% yoy at Rs359cr; Stock ends lower

25 Jan 2022 , 04:20 PM

Pidilite Industries Limited, India’s leading manufacturer of adhesives, sealants and construction chemicals today announced net sales at Rs2,841cr in its financial results for the quarter ended December 31, 2021, a growth of 24% over the same quarter last year. Net sales for the nine months ended stood at Rs7,382cr and grew by 47% over the same period last year.

EBITDA before non-operating income at Rs550cr declined by 14% over the same quarter last year. EBITDA for the nine months ended stood at Rs1,457cr and grew by 19% over the same period last year. Profit before Tax and Exceptional items (PBT) at Rs487cr declined by 19% over the same quarter last year. PBT for the nine months ended stood at Rs1,268cr and grew by 14% over the same period last year.

Profit after tax (PAT) at Rs359cr declined by 20% over the same quarter last year. PAT for the nine months ended stood at Rs952cr and grew by 16% over the same period last year.

Robust double-digit revenue growth in this quarter was led by staggering pricing actions and steady demand conditions.
Growth was broad-based across Consumer and Bazaar (‘C&B’) and Business to Business(‘B2B’) with growth in urban geographies outpacing rural geographies. C&B reported growth across all categories and B2B growth was led by continued momentum in industrial activities.

“Gross Margins continues to get impacted on account of unabated increase in input cost. We continued investments in our brands and have maintained EBITDA margins within our historic range through judicious pricing, rising volumes, and operational efficiencies.

Domestic subsidiaries in C&B reported good sales growth. Performance of domestic subsidiaries in B2B have improved sequentially on account of recovery in real estate and construction related activities,” company said in a filing on Tuesday.

Standalone Performance

Net sales at Rs2,407cr grew by 24% over the same quarter last year with underlying sales volume and mix growth of 9.4%. This was driven by 9% growth in sales volume and mix of C&B (domestic C&B grew by 10%) and 13% growth in B2B. Net sales for the nine months ended stood at Rs6,224cr and grew by 44% over the same period last year.

EBITDA before non-operating income at Rs480cr declined by 16% over the same quarter last year. EBITDA for the nine months ended stood at Rs1,266cr and grew by 11% over the same period last year.

Profit before Tax and Exceptional Items (PBT) at Rs434cr declined by 21% over the same quarter last year. PBT for the nine months ended stood at Rs1,231cr and grew by 14% over the same period last year. On a like to like basis (excluding dividend from subsidiary) PBT grew by 5% for the nine months period.

Profit after Tax (PAT) at Rs323cr declined by 21% over the same quarter last year. PAT for the nine months ended at Rs950cr and grew by 18% over the same period last year. On a like to like basis (excluding dividend from subsidiary) PAT grew by 3% for the nine months period.

Bharat Puri, Managing Director, Pidilite Industries Ltd, said: “This quarter registered strong broad-based volume and value growth across categories and businesses. Continued, unprecedented inflation in input costs necessitated calibrated pricing actions as well as the need to manage costs aggressively to maintain margins in a healthy range. Going forward, we expect near-term demand conditions to be a little more challenged, given the disruptions as a result of the pandemic as well as input inflation to continue.

However, we see demand conditions improving as well as input costs moderating by the end of the current quarter/beginning of the new financial year. We remain confident of the medium to long-term potential of the Indian home improvement sector and in our ability to deliver profitable volume growth.”

Pidilite Industries Ltd ended at Rs2,589 per share down by Rs47.95 or 1.82% from its previous closing of Rs2,636.95 per share on the BSE.