Tue. Sep 22nd, 2020

Pidilite Industries reports standalone net sales growth of 5 percent over the same quarter last year

Pidilite Industries

Gains profit before growth of 31 percent for last quarter

India’s leading manufacturer of adhesives, sealants, and construction chemicals company Pidilite Industries recently announced its financial results for the quarter and nine months ended December 2019.

The company has net sales at Rs 1,916 Cr grew by 4% over the same quarter last year. Net sales for the nine months ended stood at INR 5,719 Crore and grew by 6% over the same period last year. EBITDA before non-operating income stood at INR 464 Crore a growth of 36% over the same quarter last year. EBITDA for the nine months ended stood at INR 1278 Crore and grew by 16% over the same period last year. Profit before Tax (PBT) at INR 455 Crore grew by 38% over the same quarter last year. PBT for the nine months ended stood at INR 1,248 Crore and grew by 18% (excluding exceptional items* grew by 19%) over the same period last year. Profit after tax (PAT) at INR 346 Crore grew by 58% over the same quarter last year. For the nine months ended, profit after tax at INR 966 Crore grew by 40% (excluding exceptional items grew by 42%).

The exceptional item represents impairment loss on plant and machinery held for sale amounting to INR 22 Crore in the current period and in value of investment amounting to Rs. 6 Cr in the previous period.

Standalone Performance

The net sales at INR 1,652 Crore grew by 5% over the same quarter last year with underlying sales volume & mix growth of 3%. This was driven by a 13% growth in sales volume & mix of Industrial Products and 2% in sales volume & mix of Consumer & Bazaar Products. Net sales for the nine months ended stood at INR 4,982 Crore and grew by 6% over the same period last year. The EBITDA before non-operating income stood at INR 430 Crore and grew by 32% over the same quarter last year, on account of the softening of input cost by 629 bps. EBITDA for YTD Dec’19 stood at INR 1200 Crore and grew by 16% over the same period last year. The PBT at INR 433 Crore grew by 31% over the same quarter last year. PBT for the nine months ended stood at INR 1,212 Crore and grew by 11% (excluding exceptional items and income from inter-company transfer of intangible assets and dividend income from subsidiaries grew by 18%) over the same period last year.

PAT at INR 330 Crore grew by 47% over the same quarter last year. The effective tax rate for the quarter has been reduced from 32.3% to 23.8% due to a reduction in corporate tax rate and remeasurement of deferred tax liability. For the nine months ended, PAT at INR 942 Crore grew by 28%. PAT grew by 38% excluding exceptional items band income from inter-company transfer of intangible assets and dividend income from subsidiaries and the effect of tax thereon, in the same period last year.

The exceptional item represents impairment loss on plant and machinery held for sale amounting to INR 22 Crore in the current period. Commenting on the quarter performance, Bharat Puri, Managing Director, Pidilite Industries Ltd, stated: “Amidst a challenging market environment, Pidilite has delivered a resilient performance. While top-line growth remains subdued, earnings have improved substantially, primarily as a result of softer input cost. We remain focused on driving volume growth enabled by investments in brand building, growth categories, capabilities and sales, and distribution”

Pidilite Industries Limited is a leading manufacturer of adhesives and sealants, construction chemicals, craftsmen products, DIY (Do-It-Yourself) products and polymer emulsions in India.  The company has top-notch brand like Fevicol has become synonymous with adhesives to millions in India and is ranked amongst the most trusted brands in the country; other major brands of the company include Fevikwik, M-Seal, Fevistik, Dr. Fixit, Roff, and Fevicryl.

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