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Pidilite Industries expects double-digit volume growth in FY20

Updated : May 15, 2019 04:08 PM IST

Pidilite Industries Ltd, India's leading manufacturer of adhesives, sealants and construction chemicals, on Wednesday said it expects double-digit volume growth for FY20 after it reported a big disappointment in terms of domestic volume growth.

In an interview to CNBC-TV18, Bharat Puri, managing director, said, "Price increase has taken in December, plus overall slowdown impacted market sentiment and in turn impacted volumes in the fourth quarter."

"However, over the medium-term, we are optimistic on India and optimistic on our categories. Hopefully, with a normal monsoon, we should be back to normal business in Q2," Puri said.

On gross margins, he said, "On the consolidated basis, they are at 19.6 percent and on standalone they are at 21.5 percent. Hopeful of gross margins improving sequentially and expect earnings before interest, tax, depreciation and amortization (EBITDA) margin to stay between 20-25 percent going forward."

"We have always said that for our core categories, we should grow 1-1.5 times GDP and for growth categories, we should grow 2-5 times GDP. So as an organisation, we must get double-digit volume growth. 2019 Lok Sabha elections will not impact their business as much as monsoon," he added.
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