Pidilite Q3 results preview: PAT likely to grow 71%, margin may expand by 700 bps

Pidilite Q3 results preview: Pidilite Industries, a Mumbai-based specialty chemicals company, is all set to announce its financial results for the October-December period (Q3FY24) on Tuesday, January 23. Analysts expect Pidilite Industries, whose popular brands include Fevicol, Dr Fixit and M-Seal, to stage a strong operational performance on the back of robust domestic demand during the festive season and growth in real estate.  

According to Zee Business research, Pidilite Industries is estimated to report a 71 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 527 crore for the quarter ended December 2023. The analysts peg the company’s quarterly revenue at Rs 3,249 crore for the fiscal third quarter, as against Rs 2,998 crore for the corresponding period a year ago. 

Zee Business analysts estimate Pidilite’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter to stand at Rs 771 crore, up 55 per cent compared with the year-ago period. 

They expect the Fevicol maker’s margin, a key measure of profitability, to improve to 24 per cent from 17 per cent a year ago, driven by a decline in vinyl acetate monomer (VAM) costs. VAM is a key intermediary used in the manufacturing of polymers and resins to make adhesives, coatings, paints, films, textiles, and other end-products.  

Analysts will track Pidilite’s upcoming quarterly report closely for clarity on domestic and international demand trends, and the company’s margin outlook.  

Here's how Pidilite Industries fared in Q2 

Pidilite Industries reported a 35.8 per cent increase in consolidated net profit to Rs 458.5 crore for the fiscal second quarter, which ended on September 30, 2023, aided by volume growth and stable input prices. 

Its revenue from operations increased 2.2 per cent to Rs 3,076 while total expenses decreased 3.9 per cent to Rs 2,484.7 crore, according to a regulatory filing. PLS LINK Read more on Pidilite Q2 results 

Pidilite Industries shares: Past performance 

Pidilite Industries shares have grown more than 11 per cent in the past year, underperforming a 19 per cent rise in the headline Nifty50 index. 

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