2025-01-31 10:01:48 am | Source: Motilal Oswal Financial Services Ltd
Company Update : Pidilite Ltd By Motilal Oswal Financial Services Ltd
Company Update : Pidilite Ltd By Motilal Oswal Financial Services Ltd

Volume-led growth sustains; miss on EBITDA

Consolidated performance

* Consolidated sales grew 8% YoY to INR33.7b (est. INR33.8b).

* Underlying volume growth remained strong at 9.7% (9.0% est., 8.0% in 2QFY25). UVG was 7.3% for C&B and 21.7% for B2B businesses.

* The Consumer & Bazaar (C&B) segment’s revenue was up 5% YoY to INR26.7b (est. INR26.7b), with segmental EBIT growing 2% YoY to INR7.9b (est. INR7.7b). Segmental EBIT margin contracted 90bp YoY to 29.4% during the quarter.

* The B2B segment’s revenue rose 19% YoY to INR7.6b (est. INR6.6b), with segmental EBIT increasing 76% to INR1.3b (est. INR0.8b). Segmental EBIT margin expanded 580bp YoY to 17.6%.

* Gross margin improved ~140bp YoY to 54.3% (in line) fueled by moderate RM prices.

* Employee expenses were up 16% YoY, and other expenses rose 11% YoY.

* EBITDA margin was flat YoY at 23.7% (est. 24.6%).

* EBITDA grew 8% YoY to INR8.0b (est. INR8.3b).

* PBT grew 9% YoY to INR7.5b (est. INR7.9b).

* Adj. PAT increased 9% YoY to INR5.6b (est. INR5.9b).

 

Subsidiaries

* Domestic subsidiaries delivered double-digit revenue growth with improvement in EBITDA margin.

* Owing to global economic uncertainty, inflation, and political instability in some countries, the company’s international subsidiaries (excluding Pidilite USA and Pulvitec Brazil) reported modest sales growth.

 

Other takeaways

* The company remains cautiously optimistic about improved demand from a good monsoon and increased construction activities.

* The company’s focus remains on driving profitable, volume-led growth through brand, supply chain, and people investments.

 

 

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412

Disclaimer: The content of this article is for informational purposes only and should not be considered financial or investment advice. Investments in financial markets are subject to market risks, and past performance is not indicative of future results. Readers are strongly advised to consult a licensed financial expert or advisor for tailored advice before making any investment decisions. The data and information presented in this article may not be accurate, comprehensive, or up-to-date. Readers should not rely solely on the content of this article for any current or future financial references. To Read Complete Disclaimer Click Here