Pidilite Q3 earnings: Fevicol parent posts surprise dip in profits amid weak demand
1 min read . Updated: 25 Jan 2023, 01:04 PM IST
PremiumThe Indian company - parent of well known adhesive brand Fevicol - said that consolidated net profit fell to 3.04 billion in the three months ending December 31.
Pidilite Industries reported a surprise fall in quarterly profits, hit by higher input costs and weak demand. The Indian company - parent of well known adhesive brand Fevicol - said that consolidated net profit fell to 3.04 billion in the three months ending December 31.
Going by Refinitiv IBES data, analysts had expected the company to report a profit of 3.82 billion rupees. The Mumbai-based company continues feel the aftereffects of the pandemic, and internationally, has faced higher input costs and the impact of currency depreciation.
Pidilite is known for its synthetic resin adhesive Fevicol and waterproofing product Dr. Fixit. While its products remain well known, demand in rural and semi-urban areas had been strained in recent months. As the country strives to recover from the economic impact of COVID-19, rising inflation has forced cash-strapped consumers to tighten budgets. At the same time, Pidilite reported a 4.7% rise in cost of raw materials.
The international units reported moderate sales growth, while earnings before interest, taxes, depreciation, and amortisation remained under pressure.
The construction chemicals maker's consolidated revenue from operations rose 5.2% to 29.98 billion rupees - its slowest growth in nine quarters. According to the organisation, revenue in the year-ago quarter was inflated by price hikes.
Revenue from consumer and bazaar segment, which sells adhesives, craft materials and construction and paint chemicals to retail users grew 6.9% and accounted for 80% of the company's revenue.
(With inputs from agencies)