Pidilite Industries Q4 net profit rises 6.4% to ₹304 crore, net sales rises 8.1%
Upstox
2 min read • Updated: May 8, 2024, 2:11 PM
Summary
For the fiscal year 2024, consolidated sales rose 5% YoY to ₹12,337 crore. EBITDA grew 36.4% YoY to ₹2,707 crore during the year while net profit rose 35.6% to ₹1,747 crore. Pidilite Industries stated that revenue was underpinned by robust underlying volume growth (UVG) across categories and geographies along with mix improvement.
Pidilite Industries on Tuesday announced a 6.4% year-on-year (YoY) rise in its consolidated net profit at ₹304 crore for the fourth quarter of fiscal year 2024. Shares of the company were trading over 4.5% lower on Wednesday.
Net sales rose 8.1% YoY to ₹2,890 crore during the quarter while earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 25.7% to ₹577 crore.
For the fiscal year 2024, consolidated sales rose 5% YoY to ₹12,337 crore. EBITDA grew 36.4% YoY to ₹2,707 crore during the year while net profit rose 35.6% to ₹1,747 crore.
Pidilite Industries stated that revenue was underpinned by robust underlying volume growth (UVG) across categories and geographies along with mix improvement. The growth was broad-based with both the consumer and bazar (C&B) and business-to-business (B2B) segments achieving double-digit UVG, enabled by distribution expansion, innovation, supply chain and digital initiatives.
The company said input prices eased during the year leading to substantial expansion in gross margins by 955 basis points (bps) over FY23. “We continued to remain committed to nurturing our brands by substantially increasing our investments in brands and other growth-related initiatives,” it said.
Furthermore, the firm pointed out that both the urban and the rural markets grew, with rural markets outpacing urban growth.
Bharat Puri, Managing Director at Pidilite Industries said continued investment in the firm’s brands, growth and capability initiatives as well as moderation in input prices, contributed to the strong performance. “While there may be short-term softness in the environment in the near term, we continue to remain optimistic about market demand in the medium term, with an overall increase in construction activities, government spending and increasing prosperity,” he said.
In March 2024, the firm divested its business in Brazil and has now fully exited its businesses in the Americas.
Shares of the company have gained over 4% since the beginning of the year. The stock has risen over 14.5% in the last one year.