Pidilite Industries subsidiary divests entire stake in Climacrew for ₹1 crore

The adhesives manufacturer informed the stock exchanges in a filing that its subsidiary Pidilite Ventures Pvt Ltd has sold its entire stake in Climacrew, which is an associated company of Pidilite Ventures, to the existing and new shareholders of CPL.

Following the divestment of Climacrew Private Ltd (CPL) shareholding, the entity no longer remains an Associate Company of Pidilite Ventures.

The decision to sell the stake in Climacrew was mutually agreed by the parties, and the sale has likely been completed on or before June 6, 2024. Following the divestment of CPL’s stakeholding, Pidilite Ventures received an approximate amount of ₹1.06 crore.

Shares of ⁠Pidilite Industries ended 1.64% higher on the NSE at ₹3,140 per piece.

For the quarter ended on March 31, 2024, Pidilite Industries’ earnings before interest, tax, depreciation, and amortisation (EBITDA) margin rose to 20.5% compared to 18.4% in the same period last year.

Its consolidated profit after tax (PAT) of ₹304 crore in the final quarter of FY24 came in 6.4% higher on a year-on-year (YoY) basis at ₹304 crore, while net sales grew 8.1% YoY to ₹2,890 crore.

The company’s EBITDA witnessed a healthy double-digit growth of 26% on a YoY basis to ₹577 crore in Q4FY24.

For the entire financial year 2024, the company’s input prices eased, which led to substantial expansion in its gross margins, up 955 basis points compared to the previous financial year.

Despite the global economic uncertainty, inflation and political instability in some countries, the revenue of Pidilite’s international subsidiaries (excluding Pidilite USA and Pulvitec Brazil) in FY24 rose 7.8% over FY23, while EBITDA margins improved from 10.8% to 14.8%.