Adhesives and industrial chemicals manufacturer Pidilite Industries Ltd on Wednesday (November 8) reported a 35.7% year-on-year (YoY) jump in net profit at ₹458.5 crore for the second quarter that ended September 30, 2023. The CNBC-TV18 poll had predicted a profit of ₹456 crore for the quarter under review.

In the corresponding quarter last year, Pidilite Industries posted a net profit of ₹337.8 crore, the company said in a regulatory filing.

The company's revenue from operations increased 2.2% to ₹3,076 crore against ₹3,011.2 crore in the year-ago period, falling short of the CNBC-TV18 poll prediction of ₹3,162 crore for the quarter under review.

At the operating level, EBITDA jumped 35.9% to ₹679.6 crore in the second quarter of this fiscal over ₹500 crore in the corresponding period in the previous fiscal. The CNBC-TV18 poll had predicted an EBITDA of ₹675 crore for the quarter under review.

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The EBITDA margin stood at 22.1% in the reporting quarter compared to 16.6% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortization. The CNBC-TV18 poll had forecast a margin of 21.3% for the quarter under review.

The growth momentum of Q1 of FY24 continued in Q2 of FY24 with robust Underlying Volume Growth (UVG) of 8%. The growth was broad-based with domestic Consumer & Bazaar delivering UVG of 8% (4-year CAGR: 14%) and domestic business-to-business growing with UVG of 20% (4-year CAGR: 11%).

Standalone Gross Margin % expanded both sequentially (by 228 bps) and year on year (by 1,095 bps). The company continued to remain aggressive in nurturing our brands by doubling our investments in A&SP as compared to Q2 of FY23. EBITDA margins at 23% improved by 604 bps over Q2 of FY23 and 47 bps over Q1 of FY24.

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Both the industrial and project verticals delivered healthy growth. Despite the erratic distribution of the monsoon and resultant disruptions, volume growth remained strong. The growth in rural markets continued to be higher than in urban markets, the company said in a regulatory filing at exchanges said.

The net sales at ₹3,065 crore grew by 2% over the same quarter last year. Net sales for the half year ended stood at Rs 6,329 crore and grew by 4% over the same period last year. The Profit before Tax and Exceptional Items (PBT) at ₹622 crore grew by 42% over the same quarter last year. PBT for the half year ended stood at ₹1,266 crore and grew by 39% over the same period last year.

(Edited by : Shoma Bhattacharjee)

First Published:Nov 8, 2023 6:44 PM IST