Pidilite stock gets boost after Fevicol maker reports good December-quarter results

Pidilite Share Price: Pidilite jumped higher and saw a high-level of spurt in volume in morning deals on BSE on Wednesday (January 24, 2024) after the company reported strong operation performance in its December quarter.

The stock was trading higher by 2.68 per cent, or Rs 67.50,at Rs 2590.25, at 11:37 am on Wednesday. There was more than 15.04 times spurt in volume in the stock, as per the BSE website.

Pidilite Q3 performance

Pidilite reported its December-quarter results on Tuesday.

Its consolidated profit after tax for the December quarter soared by 68 per cent to Rs 510 crore against Rs 304 crore Year-on-Year (YoY), below Zee Business research estimates of Rs. 520 crore.

The company's revenue from operations rose by four per cent to Rs.3130 crore in the December quarter from Rs 2997 crore in the same quarter last fiscal.

Analysts had estimated the revenue to be Rs 3249 crore. 

The company's EBIDTA for the December quarter saw a jump of 50 per cent to Rs 743 crore from Rs 496 crore, below Street estimates of Rs 771 crore. 

The company clocked margins of 23.7 per cent in the December quarter against 16.5 per cent in the same quarter last year.

Research had estimated it to be 24 per cent.

The gross margins came in at 53 per cent for the third quarter compared to 42 per cent YoY. 

What Pidilite said in its commentary 

• Volume growth is at 10.4 per cent. 
• Rural and small town markets outpacing urban growth 
• Nine plants have been commissioned in the current year 
• It continued to increase distribution touch points  
• Its innovation segment continued to be a significant contributor to the overall revenues of the company.