Pidilite Industries, India’s leading manufacturer of adhesives, sealants, and construction chemicals, has announced its financial results for the quarter and year ended 31 March 2024.
In the current quarter, the company reported a UVG (Underlying Volume Growth) of 15.2 per cent, with 12.7 per cent UVG in Consumer & Bazar (C&B) businesses and 25.2 per cent UVG in Business to Business (B2B) businesses.
The Gross Margin for the quarter was higher by 691 basis points (bps) compared to the same quarter last year, attributed to higher investment in brands and customer-facing initiatives. Consequently, the EBITDA Margin for the quarter stood at 20.5 per cent, an improvement from 18.4 per cent last year.
The company's revenue for the entire fiscal year was supported by robust UVG across categories and geographies, along with mix improvement. Both segments, C&B and B2B, achieved double-digit UVG, driven by distribution expansion, innovation, supply chain enhancements, and digital initiatives. Geographically, both Urban and Rural markets witnessed growth, with Rural markets outpacing Urban growth.
Despite global economic uncertainty, inflation, and political instability in some countries, Pidilite's international subsidiaries (excluding Pidilite USA and Pulvitec Brazil) reported a revenue growth of 7.8 per cent over FY23, with improved EBITDA Margins from 10.8 per cent to 14.8 per cent.
In terms of financial performance, the consolidated net sales for the year were Rs 12,337 crore, marking a 5 per cent growth over the previous year. The EBITDA (before non-operating income) for the year stood at Rs 2,707 crore, up by 36 per cent from last year. Profit before Tax and Exceptional Items (PBT) for the year grew by 42 per cent over last year to Rs 2,451 crore, while Profit After Tax (PAT) increased by 36 per cent to Rs 1,747 crore.
Commenting on the results, Bharat Puri, Managing Director of Pidilite Industries, expressed satisfaction with the strong performance, citing robust double-digit UVG and substantial profitability improvement. He attributed this success to continued investments in brands, growth and capability initiatives, and moderation in input prices. Despite short-term softness in the environment, Puri remained optimistic about medium-term market demand, citing increased construction activities, government spending, and rising prosperity.
Pidilite Industries is a leading manufacturer of adhesives and sealants, construction chemicals, and DIY products in India. The company's brand Fevicol is widely recognised across the country.
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