Pidilite Industries' consolidated net profit soared 1275.72% to Rs 217.64 crore on 120.63% jump in revenue from operations to Rs 1,936.79 crore in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21).
Consolidated profit before tax surged 814.87% to Rs 289.74 crore in Q1 FY22 as against Rs 31.67 crore in Q1 FY21. EBITDA (before non-operating income) stood at Rs 357 crore, climbing 429% over the same quarter last year. On a like-to-like basis (excluding PAPL), EBITDA grew by 396%.
Among segments, Consumer & Bazaar business grew 111.70% to Rs 1,486.24 crore in Q1 FY22 from Rs 702.02 crore in Q1 FY21. Business to Business revenues climbed 156.08% to Rs 482.02 crore in Q1 FY22 from Rs 188.23 crore in Q1 FY21.
The quarter recorded a robust performance over the previous year's lower base on account of nationwide lockdown. The second wave of COVID-19 disrupted business continuity from second half of April 2021 with gradual closure across the country for May 2021 and part of June 2021.
Pidilite Industries saw a demand recovery since mid-June 2021 post lockdown with most markets returning to normalcy across town classes and geographies. While Consumer & Bazaar businesses (C&B) has witnessed recovery led by adhesive, construction chemicals and DIY portfolio, recovery in Business to Business (B2B) is on account of resurgence in industrial activity.
Gross margins has contracted on account of sharp escalation of input costs partially mitigated by judicious pricing. While domestic subsidiaries also suffered as a consequence of the lockdown in May 2021, the company saw a sustained recovery in demand from June 2021 onwards. Overseas subsidiaries continued its positive momentum and reported high double-digit constant currency revenue growth as well as strong earnings growth.
Commenting on the quarterly performance, Bharat Puri, the managing director (MD) of Pidilite Industries, has said, "Despite a challenging business environment, we have delivered strong broad-based sales as well as earnings growth across businesses and geographies, albeit on last year's lower base. Input costs remained a significant challenge, we see these as peaking in the next quarter and then gradually softening over the second half of the year. Going forward, we remain cautiously optimistic on a sustained demand recovery. Our focus remains on delivering volume led competitive and profitable growth as well as the health and safety of our ecosystems."
Pidilite Industries is a leading manufacturer of adhesives and sealants, construction chemicals, craftsmen products, DIY (Do-It-Yourself) products and polymer emulsions in India.
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Shares of Pidilite Industries gained 0.83% to Rs 2,239.95 on BSE. The stock has traded in the range of Rs 2,176.45 to Rs 2,246 so far.
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