Pidilite Industries shares surge over 8% after strong Q3 results; check details

Pidilite shares gained as much as 8.17% to hit an intraday high of ₹2,993 apiece on the NSE in morning deals. More than 4.3 lakh shares of the company changed hands on the bourse. At 9:35 am, the stock was trading ₹2,979 per share, up 7.9% on NSE.

Pidilite Industries reported a 9% rise in profit after tax at ₹557 crore for the December quarter compared to ₹512 crore in the year-ago period. Its net sales on a consolidated basis increased by 9% to ₹3,357 crore (excluding Pidilite USA and Pulvitec Brazil) over the same quarter last year.

The company’s revenue from operations on a consolidated basis increased by nearly 8% to ₹3,368.91 crore in the third quarter of FY2024-25 from ₹3,123 crore in the same quarter of the preceding fiscal.

Net sales on a standalone basis reached ₹3,085 crore in the December quarter, up by 9% over the same quarter last year.

The adhesives maker’s EBITDA before non-operating income increased by 8% YoY to ₹798 crore in Q3FY25.

The company in a statement mentioned that the growth was aided by Underlying Volume Growth (UVG) of 9.7% across categories and geographies. Consumer and Bazaar (C&B) UVG was 7.3%, while Business to Business maintained growth momentum with UVG of 21.7%.

“Gross Margins improved by 100 bps year on year, primarily due to benign input prices. With stepped up A&SP spends, EBITDA Margins were 24.3% as compared to 25.1% in Q3FY24,” the company stated.

“We continued to invest in our brands, upgrading and building new manufacturing facilities and expanding our distribution network.

Innovation across C&B and B2B segment continued to be a significant contributor to the overall revenues of the company,” Pidilite said.

The company, however, mentioned that its international subsidiaries (excluding Pidilite USA and Pulvitec Brazil) reported modest sales growth due to global economic uncertainty, inflation and political instability in some countries.