Pidilite Q1 Profit Soars 30.3% to ₹884 Crore on Strong Growth
By Business Desk
Pidilite Industries reports a stellar Q1 with net profit jumping 30.3% YoY to ₹884 crore, driven by robust 11.3% underlying volume growth across segments.
Pidilite Industries recorded a substantial 30.3% year-on-year surge in its consolidated net profit for the June quarter, reaching ₹884 crore. This significant rise, from ₹678.1 crore in the prior year, underscores a strong financial performance.
- Consolidated Net Profit: ₹884 crore (up 30.3% YoY)
- Total Revenue: ₹4,551 crore (up 21.3% from ₹3,753.1 crore)
- EBITDA: ₹1,194 crore (a 27% jump)
- EBITDA Margin: Expanded to 26.2% from 25.1%
The company attributed this robust growth to an underlying volume growth (UVG) of 11.3% across its product range, alongside strategic price adjustments. Both the Consumer & Bazaar (C&B) and Business-to-Business (B2B) segments experienced broad-based demand.
- C&B Revenue Growth: 22.5% (UVG of 12.2%)
- B2B Revenue Growth: 16% (UVG of 7.3%)
Despite facing elevated input costs, partly due to the West Asia crisis, Pidilite successfully boosted profitability through disciplined cost management and operating leverage. This strategy helped mitigate pressure on gross margins.
- Standalone Gross Margin: Contracted by approximately 90 basis points to 52.5%
- Consolidated Gross Margin: Declined by about 70 basis points to 53.3%
Management Insights and Outlook
Managing Director Sudhanshu Vats highlighted resilient domestic demand, noting strong performance across both urban and rurban markets. He affirmed the company’s ongoing commitment to brand building and business development to strengthen its market position.
Vats expressed confidence in Pidilite’s proactive measures to address risks from external factors, including raw material inflation, freight costs, and global supply chain disruptions, ensuring sustained growth momentum.
- Standalone Revenue from Operations: ₹4,249.38 crore
- Standalone Profit After Tax: ₹829.87 crore (up 27.7%)
On Tuesday, shares of Pidilite Industries concluded trading 1.25% lower on the NSE. However, the stock has posted a gain of nearly 12% over the past year, reflecting longer-term investor confidence.