New Delhi: Pidilite Industries, a leading maker of adhesives, sealants and construction chemicals, on Tuesday reported a 19.5 per cent decline in its consolidated net profit at Rs 359.24 crore for the third quarter ended December 2021.
Pidilite Industries said in a regulatory filing that the company had posted a profit of Rs 446.43 crore in the same period a year ago.
Its revenue from operations grew 24 per cent to Rs 2,850.72 crore during October-December 2021, as against Rs 2,299.02 crore in the year-ago period.
“The strong double-digit revenue growth in the quarter was led by increased pricing actions and stable demand conditions,” Pidilite Industries said in a statement.
Its growth was broadly based on consumer and market (C&B) and business-to-business (B2B) growth, with growth in urban areas excluding rural areas.
However, it also stated that “gross margins continue to be impacted due to continued increase in input costs”.
Bharat Puri, Managing Director, Pidilite Industries, said, “The quarter saw strong broad-based volume and price growth across categories and businesses. Consistent, unprecedented inflation in input costs helped maintain margins along with calibrated pricing actions. This required the need to aggressively manage costs for a healthy range.”
The company’s total expenses during the December 2021 quarter stood at Rs 2,372.90 crore, an increase of 37.98 per cent as against Rs 1,719.75 crore.
On the outlook, Puri said that going forward, he expects the near-term demand conditions to be slightly more challenging, given the disruptions resulting from the pandemic as well as continuing input inflation.
“However, we see improvement in input costs along with improving demand conditions by the end of the current quarter/beginning of the new financial year.
“We are confident in the medium to long term potential of the Indian home improvement sector and our ability to deliver profitable volume growth,” he said.
Shares of Pidilite Industries Ltd closed at Rs 2,589 on the BSE on Tuesday, down 1.82 per cent from the previous close.
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