Pidilite Industries Q1 results: Fevicol maker meets analysts' estimates with 32% jump in net profit
Consumer and industrial specialty chemicals maker Pidilite Industries — whose popular brands include Fevicol, Dr Fixit and M-Seal — reported a jump of 32.4 per cent in quarterly net profit.
Pidilite Industries — a manufacturer of consumer and industrial specialty chemicals — on Thursday reported a consolidated net profit of Rs 468.2 crore for the April-June period, in line with analysts' estimates. The quarterly net profit of the Mumbai-based company — whose popular brands include Fevicol, Dr Fixit and M-Seal — increased 32.4 per cent compared with the corresponding period a year ago.
The company's revenue came in at Rs 3,275.1 crore for the first quarter of the current financial year, as against Rs 3,101.1 crore for the year-ago period, according to a regulatory filing.
Pidilite said the revenue was underpinned by strong growth in volumes.
Pidilite's margin — a key measure of a company's profitability — improved to 21.6 per cent for the June quarter from 17 per cent a year ago.
According to Zee Business research, Pidilite's net profit for the three-month period was estimated at Rs 465 crore, revenue at Rs 3,383 crore and margin at 21 per cent.
"We started the year on a strong note with our domestic consumer businesses delivering robust volume growths. B2B, exports and international business continued to face sluggish demand conditions. A combination of moderating input prices and operational efficiencies saw our gross margins improve substantially. Part of this was reinvested in our brands and growth facing initiatives," said Bharat Puri, Managing Director at Pidilite Industries.
The company's cost of material consumed eased 12.7 per cent on a year-on-year basis to Rs 1,366.1 crore.
"Looking ahead, growths will largely be volume led. A good monsoon, increased construction activity and stable input prices enable us to look at the future with increased optimism," Puri added.
Pidilite shares continued to struggle below the flatline after the earnings announcement, falling by as much as Rs 84.8 or 3.3 per cent to Rs 2,520 apiece on BSE.
Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
IRCTC Dividend 2024: Railway PSU announces 200% interim dividend - Check record date and other details
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
PSU Oil Stocks: Here's what brokerage suggests on these 2 largecap, 1 midcap scrips - Buy, Sell or Hold?
03:05 PM IST