Specialty chemical company Pidilite Industries on Wednesday reported strong operational performance for the quarter ended June 2021.
Shares of the company neared their all-time high in early trade today. However, the stock erased gains as the session progressed and fell 1.5%.
Pidilite reported consolidated net sales growth of 121% over the same quarter last year.
It also posted an EBITDA growth of 429% for the quarter ended 30 June 2021.
Profit before tax came in at Rs 2.9 bn, growing by 832% over the same quarter last year.
Meanwhile, profit after tax (PAT) came at Rs 2.2 bn, which grew multi-fold, over the same quarter last year.
Here's a table comparing Pidilite's results on key parameters.
| (Rs bn) | Jun-21 | Mar-21 | Jun-20 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
| Revenue from operations | 19.4 | 22.4 | 8.8 | -13.4% | 120.8% |
| Total Expenses | 16.6 | 18.4 | 8.7 | -10.0% | 91.1% |
| Profit before tax | 2.9 | 4.1 | 0.3 | -29.7% | 832.3% |
| Tax | 0.7 | 1.0 | 0.2 | -30.8% | 350.0% |
| Profit after tax | 2.2 | 3.1 | 0.2 | -29.3% | 1346.7% |
Pidilite attributed the robust performance due to previous year's lower base on account of nationwide lockdown.
If compared on a sequential basis, Pidilite's performance was tad lower as can be seen from the table above.
In the quarter, Pidilite's cost of materials consumed spiked 276% to Rs 9.1 bn.
As for most of the companies, for Pidilite too, the second wave disrupted business continuity from second half of April 2021 with gradual closures across the country in May and a part of June.
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Pidilite saw demand recovery since mid-June with most markets returning to normalcy across town classes and geographies.
Its consumer and bazaar businesses (C&B) witnessed recovery led by adhesive, construction chemicals, and DIY portfolio.
Meanwhile, the recovery in business to business (B2B) category was on account of resurgence in industrial activity.
Gross margins contracted on account of sharp escalation in input costs. This was partially mitigated by judicious pricing.
Pidilite's overseas subsidiaries continued their positive momentum and reported double-digit constant currency revenue growth on top of strong earnings growth.
Commenting on the performance, Pidilite's MD Bharat Puri said,
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Just a few days back, Pidilite Industries' wholly-owned subsidiary named Madhumala Ventures Pvt Ltd (MVPL) completed the acquisition of an additional stake in AapkaPainter Solutions Pvt Ltd to take its holding to 47%, on a fully diluted basis.
Back in July, Madhumala Ventures had agreed for a cash investment of Rs 149.6 m in AapkaPainter Solutions through the primary and secondary purchase of shares.
Over the years, Pidilite has expanded its product portfolio. Pidilite's key acquisitions over past two decades include:
a) Ranipal in 1999
b) M-Seal and Dr. Fixit in 2000
c) Steelgrip in 2002 and
d) Roff in 2005
Pidilite Industries share price opened the day up by 1% at Rs 2,300 on the BSE, against its previous close of Rs 2,255.50.
As the session progressed, shares erased gains and fell 1.5% to Rs 2,205.
Pidilite shares have a 52-week high quote of Rs 2,335 touched on 22 July 2021 and a 52-week low quote of Rs 1,358 touched on 17 August 2020.
Over the past one year, shares of the company have gained 63% as compared to 42% gains in BSE Sensex.
Pidilite has recorded a stellar performance financially and on the bourses, despite the pandemic. Strong demand from urban regions and the consolidation of new business has helped drive the revenue growth.
At the current price of Rs 2,223, the company commands a marketcap of Rs 1,129.4 bn.
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Pidilite Industries is a leading manufacturer of adhesives and sealants, construction chemicals, craftsmen products, DIY products, and polymer emulsions in India.
Most of Pidilite's products have been developed through strong in-house R&D. Its brand name Fevicol has become synonymous with adhesives to millions in India and is ranked amongst the most trusted brands in the country.
Some of the company's other major brands are M-Seal, Fevikwik, Fevistik, Roff, Dr. Fixit, Fevicryl, Motomax, Hobby Ideas, Araldite.
Pidilite earns about 52.5% of its revenues from adhesives & sealants category, followed by construction & paint chemicals, and art & craft materials industrial adhesives.
In total, the company produces close to 500 products across brands.
To know more about the company, check out Pidilite Industries company fact sheet and quarterly results.
You can also compare Pidilite with its peers.
Pidilite Industries vs Alkyl Amines
Pidilite Industries vs Vinati Organics
Pidilite Industries vs Navin Fluorine
To know what's moving the Indian stock markets today, check out the most recent share market updates here.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...
Over the past one year, the company's stock has given 38% returns, lagging the benchmark Sensex, which rose 63% in the same period.
For the quarter ended December 2020, PIDILITE INDUSTRIES has posted a net profit of Rs 4 bn (up 29.1% YoY). Sales on the other hand came in at Rs 23 bn (up 19.3% YoY). Read on for a complete analysis of PIDILITE INDUSTRIES's quarterly results.
Here's an analysis of the annual report of PIDILITE INDUSTRIES for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of PIDILITE INDUSTRIES. Also includes updates on the valuation of PIDILITE INDUSTRIES.
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