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Pidilite Industries Reports Strong Q1 FY24 Growth and Financial Performance

Pidilite Industries, a renowned adhesives manufacturer, has reported robust growth and key financial performance metrics for the first quarter of FY24:

• Net Profit Surge: The company’s net profit for Q1 FY24 increased by 31.5% to ₹473.7 crore from ₹357.5 crore in the same quarter of the previous year.
• Consolidated Revenue: Pidilite’s consolidated revenue in Q1FY24 rose by 5.6% to ₹3,275.1 crore from ₹3,101.1 crore in the corresponding period last year.
• Standalone Net Sales: Standalone net sales reached ₹2,952 crore, marking a growth of 6% compared to the same quarter last year. The company’s underlying volume growth stood at 8%.
• Segment Performance: The Consumer & Bazaar Segment (C&B) achieved 9% revenue growth, with the domestic C&B business registering double-digit revenue and underlying volume growth. The Business to Business segment (B2B) saw a single-digit revenue decline primarily due to lower exports and reduced demand from export-oriented industries.
• EBITDA Growth: The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 33.5% to ₹706.8 crore from ₹529.5 crore in the same quarter of the previous year.
• EBITDA Margin: Pidilite’s EBITDA margin expanded by 450 basis points (bps) to 21.6% from 17.1% YoY.
• Gross Margins: Gross margins expanded sequentially and YoY by 260 bps and 812 bps, respectively. This growth was attributed to moderation in input prices and operational efficiencies.
• Management’s Outlook: Bharat Puri, Managing Director of Pidilite Industries, emphasized that the company started the year on a strong note, with robust volume growth in domestic consumer businesses. Puri stated that growth would be largely volume-led, supported by factors such as a good monsoon, increased construction activity, and stable input prices.
• Cost of Material Consumed: The cost of material consumed decreased by 12.7% on a YoY basis to ₹1,366.1 crore.
• Segment Revenue Breakdown: Revenue from the Consumer & Bazaar business, accounting for 72.5% of the overall revenue, increased by 9.2% to ₹2,660.9 crore. Revenue from the B2B unit declined by 6.1% to ₹678 crore.

Pidilite Industries’ strong financial performance in Q1 FY24, characterized by profit growth, revenue expansion, and margin improvement, reflects its ability to navigate market conditions and optimize operational efficiencies. The company’s outlook for growth, driven by volume and positive economic factors, underscores its optimism for the coming quarters.