Pidilite climbs 3% as margins improve in December quarter

NEW DELHI: Shares of Pidilite Industries rallied over 3 per cent on Monday after the company announced a 49.5 per cent YoY jump in Q3 net profit to Rs 185.72 crore from Rs 124.36 crore a year ago. However, net profit declined 3.12 per cent on a quarter-to-quarter basis.

Reacting to the earnings, the stock saw its value surge 2.95 per cent to Rs 583 on the BSE. The country’s largest adhesive manufacturer saw its December quarter revenues grow 11.9 per cent to Rs 1,339.08 crore.

“Pidilite’s Q3 earnings were a mixed bag. Its top-line growth met IIFL estimates, but bottom line growth missed it by 4%,” IIFL said in a note to investors.

“Pidilite’s gross margin improved by 745 bps to 51.7 per cent on the back of benign input cost. Other expenses cost increased by 133 bps, which suppressed Ebitda margin despite a 596 bps improvement to 22 per cent, which was 105 bps lower than IIFL estimate of 23.1 per cent,” it said.