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Pidilite Industries Limited Q2FY21 results update

Pidilite Industries Limited Q2FY21 results update

Last updated: 05 Nov, 2020 | 01:41 pm

Pidilite Industries Limited Q2FY21 results update

Pidilite Industries Limited, India’s leading manufacturer of adhesives, sealants and construction chemicals today announced its financial results for the quarter ending September 2020.

Profit: Pidilite declared a consolidated Net Profit of ₹ 357 crore, a rise of 10% year-on-year, aided by benign input costs as well as strong cost optimisation measures. 

EBITDA: EBITDA stood at ₹ 357 crore on a consolidated basis, a rise of 39% year-on-year. 

Sales: Net Sales stood at ₹ 1,857 crore on a consolidated level, a 3% increase year-on-year, with standalone sales of ₹ 1,620 crore, a rise of 4% year-on-year.

The quarter saw steady demand improvement each month, with Construction Chemicals showing healthy growth, while the B2B segment continued to face headwinds, showing signs of recovery in the latter part of the quarter.

Expenses: The expenses were down 4.21% year-on-year to ₹ 1,424.23 crore.

Acquisition: The company completed acquisition of the US-based Huntsman Group's Indian subsidiary for ₹ 2,100 crore. As per the filing, Pidilite acquired 100% stake in Huntsman Advanced Materials Solutions Private Ltd (HAMSPL), which manufactures and sells Adhesives, Sealants and other products under well-known brands such as Araldite, Araldite Karpenter and Araseal.

The stocks closed at ₹ 1,589.4 today, up 1.72% from yesterday. The company said in its filing that growth has normalized, reaching pre-covid levels for the consumer and bazaar segment, with international subsidiaries reporting healthy double-digit growth. The company remains cautiously optimistic on steady demand recovery, with a focus to drive volume growth via investment in brand, sales and distribution fostered with consumer relevant innovation.

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