India's Pidilite Industries beat Q1 profit view on steady demand
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India's Pidilite Industries beat first-quarter profit estimates on Wednesday, helped by steady demand for its adhesives and sealants and largely flat costs.
Pidilite reported a consolidated net profit of 5.67 billion rupees ($67.4 million) in the April-June quarter, up 21% from a year ago. Analysts were expecting a profit of 5.32 billion rupees, as per LSEG data.
The adhesives maker notched a 3% sales growth in its biggest segment - consumer and bazaar - which consists of the Fevicol adhesive and Dr. Fixit waterproofing products brands.
During the April-June quarter, India witnessed a booming manufacturing sector activity as output increased on robust demand.
This robust demand, particularly in the construction sector, led to heightened consumption of construction-related chemicals such as those made by Pidilite.
The company reported a revenue of 33.95 billion rupees, compared to 32.75 billion rupees a year ago, while total expenses were largely flat at 26.79 billion rupees.
Its earnings before interest, taxes, depreciation and amortization (EBITDA) margin grew by 15% over the same quarter year ago.
"Given a healthy monsoon and the ensuing festival season, we remain optimistic on market demand and our ability to deliver robust growth," Managing Director Bharat Puri said in an earnings statement.
Shares of Pidilite extended its gains, rising as much as 4.6% after the results.
($1 = 83.9575 Indian rupees)
