Piditlite Industries reported weak second quarter earnings. Domestic volume growth was at mere 1 percent, while consumer volumes declined by 1 percent.
Talking about the weak numbers, Pidilite Industries ED Apurva Parekh told CNBC-TV18 that it was due to a combination of factors such as unfavourable market conditions, liquidity challenge, and prolonged monsoon - all led to lower growth in the quarter.
However, the company expects growth to improve in the medium term.
Talking about advertising expenditure, he said the ad spends for the full year would normalise. “You will not see significant growth in advertising and sales promotion expenditure as seen in the current quarter,” said Parekh, adding that EBITDA has grown by 11 percent ex-ad spends and largely due to improvement in gross margins.
The company attributed the good performance of its industrial segment in Q2 to exports. The pigment business grew well in overseas as well as domestic market, said Parekh.
While tile adhesive segment did very well for the company, CIPY polyurethane faced challenges and waterproofing business saw moderate performance in the quarter.