Mumbai-based Pidilite Industries, renowned for its iconic brands such as Fevicol, Dr Fixit, and M-Seal, has unveiled its financial performance for the fourth quarter of the fiscal year, showcasing a notable surge in net profit despite falling slightly short of analysts’ expectations.
For the period spanning January to March, Pidilite Industries posted a consolidated net profit of Rs 364 crore, marking a significant 19.3% increase compared to the same quarter last year. The quarterly revenue stood at Rs 2,902 crore, reflecting a robust growth rate of 7.9% year-on-year. Meanwhile, the company recorded quarterly earnings before interest, taxes, depreciation, and amortization (EBITDA) of Rs 567 crore, marking an impressive 23.5% rise over the corresponding period in the previous year.
Key to note is the improvement in Pidilite’s margin, a pivotal indicator of profitability, which saw a notable uptick of 240 basis points (bps) to reach 19.5%. The Consumer and Bazaar (C&B) unit of Pidilite witnessed a remarkable volume growth of 12.7% during the quarter, surpassing analysts’ expectations of 11-12%.
Bharat Puri, Managing Director of Pidilite Industries, attributed the robust performance to the company’s sustained focus on brand investment, growth initiatives, and operational efficiencies. He remarked, “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.”
For the fiscal year ending March 31, Pidilite’s net profit soared by 36% to Rs 1,747 crore, accompanied by a 5.0% growth in net sales, which reached Rs 12,337 crore. While acknowledging potential short-term challenges in the business environment, Puri expressed optimism about market demand in the medium term, citing anticipated growth in construction activities, government spending, and rising prosperity. Pidilite Industries’ robust financial performance underscores its resilience and strategic agility amid evolving market dynamics, positioning the company for sustained growth and value creation in the future.
