Pidilite Industries, a leading adhesive manufacturer, announced a significant 68% increase in its third-quarter profit, marking its most substantial year-over-year growth in nine quarters. The stellar performance was fueled by sustained demand and cost-effective measures, positioning the company as a standout player in the industry.
Strong Financial Highlights:
The third-quarter results showcased remarkable achievements, including a noteworthy 10.4% Year-on-Year growth in Standalone Underlying Volume (UVG), a 51% increase in Standalone EBITDA, and an impressive 76% growth in Profit After Tax (PAT).
Driving Forces Behind the Surge:
The surge in construction and infrastructure activities in the country played a pivotal role in boosting demand for construction chemicals, benefiting industrial adhesives and chemical manufacturers like Pidilite. The standout features included a 5% growth in Standalone net sales, reaching Rs 2,823 crore, and a 51% growth in Standalone EBITDA, reaching Rs 708 crore.
UVG and Segment-wise Growth:
The remarkable UVG of 10.4% emerged as a key driver behind the quarter’s revenue growth. Both Consumer and Bazaar (C&B) and business-to-business (B2B) segments experienced double-digit UVG, with rural and small-town markets outpacing urban growth. Export demand also displayed strength with double-digit UVG.
Margin Expansion and International Performance:
Gross Margins continued to expand, both sequentially and Year-on-Year, demonstrating the company’s efficiency in managing costs. Despite global economic uncertainties and inflation, international subsidiaries (excluding Pidilite USA Inc.) reported modest sales growth, with EBITDA doubling over Q3 FY23.
Forward-looking Optimism:
Bharat Puri, Managing Director of Pidilite Industries Ltd, expressed optimism about market demand in the near term. He emphasized the company’s commitment to delivering volume-led profitable growth through investments in brands, supply chain, digital infrastructure, innovation, and customer-facing initiatives.
