Pidilite Industries Stock Plunges 5% Despite Decent Corporate Earnings
Pidilite clocks an increase in its consolidated net profit to Rs 301 crore against the Rs 283 crore in the same quarter of last fiscal year
Pidilite Industries (PI) stock plunged around 5 per cent in the Wednesday trading session after the market mood did not welcome the adhesive manufacturer's last quarter earnings for FY 23-24.
PI stock traded at Rs 2807 with 4.89 per cent loss in the afternoon session on the National Stock Exchange (NSE).
In the fourth quarter, PI clocked an increase in its consolidated net profit to Rs 301 crore against the Rs 283 crore in the same quarter of last fiscal year.
The Gross Margin for the quarter was higher by 6.91 per cent 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.
PI reported the consolidated net sales for the year at 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.
The company's revenue for the entire fiscal year was supported by robust underlying volume growth (UVG) across categories and geographies, along with mix improvement. Both segments, consumer and bazaar (C&B) and B2B, achieved double-digit UVG, driven by distribution expansion, innovation, supply chain enhancements, and digital initiatives.
The board of directors recommended a dividend of Rs 16 per equity share whereas the earnings per share (EPS) rose Rs 5.90 compared to Rs 5.56.
In terms of stock performance, PI struggled to deliver at equivalent returns with benchmark indices Nifty and Sensex. So far in 2024, PI stock rose 2.7 per cent against the 2.6 per cent returns of Nifty 50.
