Pidilite Industries net profit falls 19.5% in December quarter to Rs 359.2 crore | company news

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NEW DELHI: Pidilite Industries, a leading maker of adhesives, sealants and construction chemicals, on Tuesday reported a 19.5 percent fall in its consolidated net profit to Rs.359.24 billion for the third quarter ended December 2021.

The company had a profit of Rs 446.43 crore in the corresponding period a year ago, Pidilite Industries said in a regulatory filing.

Operating revenue for October-December 2021 increased by 24 percent to Rs.2,850.72 crore compared to Rs.2,299.02 crore in the same period last year.

“The robust double-digit revenue growth this quarter was led by tiered price action and steady demand conditions,” Pidilite Industries said in a statement.

Its growth has been broad-based in the consumer and bazaar (C&B) and business-to-business (B2B) sectors, with growth in urban regions outpacing rural regions.

However, it also added that “gross margins continue to be impacted due to an unabated increase in input costs.”

Bharat Puri, Managing Director of Pidilite Industries, said: “This quarter saw strong, broad-based volume and value growth across all categories and businesses. Continued, unprecedented input cost inflation has required calibrated pricing action, as well as the need to aggressively manage costs to maintain margins in a healthy assortment.”

The company’s total expenses for the December quarter 2021 were Rs.2,372.90 crore, a jump of 37.98 percent from Rs.1,719.75 crore.

On the outlook, Puri said that going forward he expects near-term demand conditions to be somewhat more challenging given the disruptions resulting from the pandemic as well as ongoing input inflation.

“However, we see an improvement in demand conditions as well as a moderation in input costs by the end of the current quarter/beginning of the new financial year.

“We are confident in the medium to long-term potential of the Indian DIY sector and our ability to deliver profitable volume growth,” he added.

Pidilite Industries Ltd shares were trading at Rs 2,589 apiece on the BSE on Tuesday, down 1.82 percent from the previous close.

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