Pidilite Q4 Results: Net profit up 19%, margin expands by 240 bps; Fevicol maker remains optimistic about medium-term demand prospects

Pidilite Industries Q4 FY24 Results: Mumbai-headquartered Pidilite Industries, whose popular brands include Fevicol, Dr Fixit and M-Seal, on Tuesday reported a consolidated net profit of Rs 364 crore for the January-March period, falling short of analysts' expectations. The quarterly net profit increased 19.3 per cent on a year-on-year basis. 

The Fevicol glue maker registered quarterly revenue of Rs 2,902 crore, up 7.9 per cent compared with the corresponding period a year ago.

According to Zee Business analysts, Pidilite's March-quarter net profit was estimated at Rs 425 crore and revenue at Rs 2,821 crore. 

Pidilite Industries, which makes a range of adhesives, sealants and construction chemicals, logged Rs 567 crore in quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA), up 23.5 per cent over the year-ago period.

Its margin, a key measure of profitability for businesses, improved by 240 basis points (bps) to 19.5 per cent. 

Both EBITDA and margin also missed analysts' estimates. 

Zee Business analysts had pegged the adhesive maker's March-quarter EBITDA at Rs 629 crore and margin at 22 per cent. 

Pidilite's Consumer and Bazaar (C&B) unit recorded volume growth of 12.7 per cent during the quarter under review, better than the analysts' expectation of 11-12 per cent. 

“At Pidilite, we delivered robust double-digit Underlying Volume Growth (UVG) as well as substantial improvement in profitability, both for the quarter as well as FY24. Continued investment in our brands, growth and capability initiatives as well as moderation in input prices contributed to this strong performance," said Bharat Puri, Managing Director, Pidilite Industries.

For the year ended March 31, Pidilite's net profit increased 36 per cent to Rs 1,747 crore while net sales grew 5.0 per cent to Rs 12,337 crore. 

"While there may be short-term softness in the environment in the near term, we continue to remain optimistic about market demand in the medium term, with an overall increase in construction activities, government spending and increasing prosperity," Puri added. 

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