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    Pidilite clocks all-round quarterly performance as volume growth exceeds Street estimates

    Pidilite clocks all-round quarterly performance as volume growth exceeds Street estimates

    Pidilite clocks all-round quarterly performance as volume growth exceeds Street estimates
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    By CNBCTV18.com  IST (Updated)

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    Pidilite Industries results: Pidilite — which owns brands such as Fevicol, FeviKwik, Dr Fixit, Ranipal and M-seal — clocked volume growth of 49 percent. That was far ahead of Street estimates. 

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    Pidilite Industries — a consumer and industrial specialty chemicals maker whose brands include Fevicol — on Wednesday reported a strong quarterly performance driven by better-than-expected growth in volumes. Pidilite's net profit for the April-June period jumped 64.3 percent to Rs 357.5 crore compared with the corresponding period a year ago.
    Its revenue came in at Rs 3,101 crore for the three-month period, up 60.1 percent on a year-on-year basis, according to a regulatory filing.
    Analysts in a CNBC-TV18 poll had estimated its quarterly profit at Rs 305 crore and revenue at Rs 2,850 crore.
    Its volumes saw an increase of 49 percent on year. Analysts polled by CNBC-TV18 had estimated volume growth at 30-35 percent. 
    “In this quarter, we have recorded robust value and volume growths which have been broad-based across businesses, categories and geographies. While input costs have continued to be high during this quarter, EBITDA margins remained constant sequentially on account of calibrated pricing, increased sales and effective cost management actions," said Bharat Puri, Managing Director at Pidilite Industries.
    Pidilite Industries' EBITDA — a measure of operating profitability — jumped 52.3 percent to Rs 529 crore, far ahead of the 35.2 percent estimated by the analysts.
    The margin of the company — which also owns brands such as FeviKwik, Dr Fixit, Ranipal and M-seal — slipped by 80 basis points on year to 17.1 percent. Yet, it was better than the 16.5 percent pegged by the analysts polled.
    "While the near term remains challenging, we remain cautiously optimistic on the medium term given the recent softening of input prices led by lower oil prices, a good monsoon and continued good demand conditions in the housing and home improvement sector," Puri added.
    Pidilite shares failed to make it to the green after the earnings announcement.
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