Pidilite Share Price Zooms Over 3%: Released Q2 FY25 Results

On October 23, 2024, Pidilite Industries Limited, India’s leading manufacturer of adhesives, sealants, and construction chemicals, announced its financial results for the quarter (Q2 FY25) and half year ended September 30, 2024 (1H FY25). 

During the quarter, Pidilite reported a revenue growth of 7% for the current quarter, driven by an 8% increase in Volume Growth (UVG). Despite challenges posed by rainfall at the start of the quarter, demand for Consumer and Bazaar (C&B) products showed a UVG of 6%, with rural markets continuing to outpace urban markets. The Business-to-Business (B2B) segment maintained strong momentum, achieving a UVG of 21% led by growth in the Industrial and Project Verticals.

Margin Expansion and Cost Management

Input prices remained favourable, contributing to a gross margin expansion of 281 basis points compared to the same quarter last year. EBITDA margins reached 24.6%, marking a 143 basis point improvement over Q2 FY24. For the first six months of the financial year, the overall UVG stood at 9%, with C&B achieving 7% and B2B at an impressive 19%. The gross margin increased by 376 basis points over H1 FY24, primarily due to lower input costs, while EBITDA margins for this period were 24.6%, up from 23.0% in the previous year. Additionally, the company’s working capital situation remained robust, resulting in strong cash flows.

Investment in Growth

Pidilite Industries continued its commitment to growth by investing in the upgrade and construction of new manufacturing facilities, as well as enhancing its distribution network. This strategic focus positions the company well for sustained growth in the future.

Consolidated Financial Performance

In terms of consolidated performance, net sales for the quarter reached ₹3,223 crore, reflecting a 7% growth (excluding contributions from Pidilite USA and Pulvitec Brazil) compared to the same quarter last year. For the half year ended, net sales totalled ₹6,607 crore, representing a 6% increase over the corresponding period last year. EBITDA before non-operating income for the quarter was ₹769 crore, a 13% increase year-over-year, while the half-year figure stood at ₹1,582 crore, up 14%.

Profitability Metrics

Profit Before Tax and Exceptional Items (PBT) for the quarter was ₹725 crore, a 17% increase year-over-year. For the half year, PBT reached ₹1,495 crore, up 18% compared to the same period last year. Profit After Tax (PAT) for the quarter was ₹540 crore, growing by 18%, while PAT for the half year ended at ₹1,112 crore, a 19% increase.

Standalone Financial Performance

On a standalone basis, net sales amounted to ₹2,965 crore for the quarter, a 7% increase over the same quarter last year. For the half year, net sales totalled ₹6,099 crore, also reflecting a 7% growth. Standalone EBITDA before non-operating income was ₹731 crore for the quarter, up 14% year-over-year, while the half-year EBITDA stood at ₹1,502 crore, maintaining a 14% growth.

Continued Growth in Profitability

Profit Before Tax and Exceptional Items (PBT) for the standalone segment was ₹720 crore, an 18% growth over the same quarter last year. For the half year, standalone PBT reached ₹1,462 crore, reflecting an 18% increase. Profit After Tax (PAT) for the quarter was ₹542 crore, marking a 19% increase, while PAT for the half year stood at ₹1,094 crore, also growing by 19% compared to the previous year.

Commenting on the results, Mr Bharat Puri, Managing Director, Pidilite Industries Ltd, said: “Despite challenging economic conditions across the first half of the financial year, we have delivered robust Underlying Volume Growth as well as improved profitability. As we look ahead, we continue to remain optimistic for the second half as a result of the healthy monsoon, increased government spending and growing new construction activity. While we remain watchful of the geo-political situation, we continue to significantly invest in growth-facing initiatives as well as building the supply chain of the future.”

On October 24, 2024, Pidilite Industries Limited shares opened at ₹3130.00 and touched the day high of ₹3219.25 at 11:00 AM.

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