Fevicol-maker Pidilite Industries Ltd's share price jumped nearly 4 percent on Thursday amid positive investor sentiment as the adhesive major posted a strong set of earnings for the quarter ended September 30.
Pidilite posted a consolidated net profit of Rs 374.6 crore, up 5.1 percent on a year-on-year basis, for the fiscal’s second quarter, beating Street estimates. Its revenue rose 39.7 percent on year to Rs 2,626.3 crore.
The firm’s earnings before interest, taxes, depreciation and ammortisation (EBITDA) stood at Rs 549.6 crore in the July-September period, as against Rs 512.6 crore in the corresponding period a year ago. Its margin came in at 20.9 percent in the quarter ended September 2021, as against 27.3 percent in the three months to September 2020.
Bharat Puri, managing director, Pidilite Industries Limited, said, the company witnessed significant improvement in demand conditions across categories and geographies in the second quarter. He, however, pointed to unprecedented increases and volatility in input costs as a major challenge.
“Going forward, we remain cautiously optimistic on continuing robust demand conditions. Unabated commodity inflation and supply availability remains a significant challenge and would require continued focus. Our focus remains on driving consistent, profitable volume growth through investment in our brands, supply chain and people,” he said.
Pidilite stock price has returned over 31 percent in the past six months and was 60 points short of touching the 52-week high on Thursday.
At 1 pm, Pidilite shares were trading 4.17 percent higher at Rs 2464.35 apiece on BSE and were up 3.97 percent at Rs 2,460.35 apiece on NSE.
As per BSE, the total market cap of Pidilite Industries Ltd as of today stands at an excess of Rs 1.25 lakh crore.
(Edited by : Ajay Vaishnav)