Pidilite Industries Q3 Results FY2024, Net profit at Rs.511 crores

On 23rd January, Pidilite Industries announced its quarterly results.

Key Highlights:

- Net sales at Rs. 3,119 Crores grew by 4% over the same quarter last year. Net Sales for the nine months ended stood at Rs. 9,447 crores and grew by 4% over the same period last year.  
- EBITDA before non-operating income at Rs. 742 Crores grew by 50% over the same quarter last year. EBITDA for the nine months ended stood at Rs. 2,129 cr and grew by 40% over the same period last year.  
-  Profit after tax (PAT) at Rs. 510.92 Crores grew by 66% over the same quarter last year. PAT for the nine months ended stood at Rs. 1,443.14 Crores and grew by 44% over the same period last year. 
 

Business Highlights:   

- Strong UVG of 10.4% across categories and geographies contributed to the current quarter's sales increase. 
- Both the Business to Business (B2B) and Consumer and Bazaar (C&B) categories reported double-digit UVG, indicating a wide basis for this development.
- The expansion of the rural and small-town markets exceeded that of the metropolitan markets.
- Strong export demand continued with double-digit UVG.
- Standalone Gross Margins increased by 1,191 bps over Q3 FY23 and by 174 bps over Q2 FY24, showing strong growth both sequentially and annually.
- Pidilite Industries made investments in modernizing and establishing new manufacturing facilities while maintaining a laser-like focus on creating a robust supply chain. The business put one more plant into service this quarter, bringing the total number of units put into service this year to nine.
- Together with making efficient use of technology, the company kept expanding its distribution touchpoints throughout India, reaching both urban and rural consumers.
- The company's overall sales were significantly boosted by innovation in both the C&B and B2B segments.
- Except for Pidilite USA Inc., international subsidiaries reported modest sales growth with EBITDA tripling over Q3 FY23 despite uncertain global economic circumstances, inflation, and uncertain political conditions in several countries. EBITDA margins increased year over year as well as sequentially.
Both C&B and B2B domestic subsidiaries had a double-digit increase in sales. Domestic subsidiaries also saw strong growth in sales. 

Commenting on the results, Mr. Bharat Puri, Managing Director, Pidilite Industries Ltd, said: “At Pidilite, we delivered another quarter of robust Underlying Volume Growth (‘UVG’) along with substantially improved profitability. Continued moderation in input costs resulted in good improvements in Gross Margins, enabling us to invest behind our brands as well as other growth initiatives. Our growth remained broad-based across categories and geographies. We continue to remain optimistic about market demand in the near term, with increased government spending and the overall improvement in construction activities. We remain committed to deliver volume-led profitable growth via investment in our brands, supply chain, digital infrastructure, innovation, and customer-facing initiatives.”