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Business News/ Companies / Company Results/  Pidilite Q1 results review: net profit spikes as sales jumps 121%
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Pidilite Q1 results review: net profit spikes as sales jumps 121%

Pidilite posts strong sales growth and a multi-fold jump in bottomline.

Pidilite reported consolidated net sales growth of 121% over the same quarter last year. (Photo: iStock)Premium
Pidilite reported consolidated net sales growth of 121% over the same quarter last year. (Photo: iStock)

Specialty chemical company Pidilite Industries on Wednesday reported strong operational performance for the quarter ended June 2021.

Shares of the company neared their all-time high in early trade today. However, the stock erased gains as the session progressed and fell 1.5%.

Robust performance on a low base

Pidilite reported consolidated net sales growth of 121% over the same quarter last year.

It also posted an EBITDA growth of 429% for the quarter ended 30 June 2021.

Profit before tax came in at 2.9 bn, growing by 832% over the same quarter last year.

Meanwhile, profit after tax (PAT) came at 2.2 bn, which grew multi-fold, over the same quarter last year.

Here’s a table comparing Pidilite’s results on key parameters.

Pidilite Q1 review.
View Full Image
Pidilite Q1 review.

Pidilite attributed the robust performance due to previous year’s lower base on account of nationwide lockdown.

If compared on a sequential basis, Pidilite’s performance was tad lower as can be seen from the table above.

In the quarter, Pidilite’s cost of materials consumed spiked 276% to 9.1 bn.

As for most of the companies, for Pidilite too, the second wave disrupted business continuity from second half of April 2021 with gradual closures across the country in May and a part of June.

Demand recovery since June

Pidilite saw demand recovery since mid-June with most markets returning to normalcy across town classes and geographies.

Its consumer and bazaar businesses (C&B) witnessed recovery led by adhesive, construction chemicals, and DIY portfolio.

Meanwhile, the recovery in business to business (B2B) category was on account of resurgence in industrial activity.

Gross margins contracted on account of sharp escalation in input costs. This was partially mitigated by judicious pricing.

Pidilite’s overseas subsidiaries continued their positive momentum and reported double-digit constant currency revenue growth on top of strong earnings growth.

Commenting on the performance, Pidilite’s MD Bharat Puri said,

Despite a challenging business environment, we have delivered strong broad-based sales as well as earnings growth across businesses and geographies, albeit on last year’s lower base.

Input costs remained a significant challenge, we see these as peaking in the next quarter and then gradually softening over the second half of the year.

Recent acquisition

Just a few days back, Pidilite Industries’ wholly-owned subsidiary named Madhumala Ventures Pvt Ltd (MVPL) completed the acquisition of an additional stake in AapkaPainter Solutions Pvt Ltd to take its holding to 47%, on a fully diluted basis.

Back in July, Madhumala Ventures had agreed for a cash investment of 149.6 m in AapkaPainter Solutions through the primary and secondary purchase of shares.

Over the years, Pidilite has expanded its product portfolio. Pidilite's key acquisitions over past two decades include:

a) Ranipal in 1999

b) M-Seal and Dr. Fixit in 2000

c) Steelgrip in 2002 and

d) Roff in 2005

How the stock markets reacted to Pidilite’s results

Pidilite Industries share price opened the day up by 1% at 2,300 on the BSE, against its previous close of 2,255.50.

As the session progressed, shares erased gains and fell 1.5% to 2,205.

Pidilite shares have a 52-week high quote of 2,335 touched on 22 July 2021 and a 52-week low quote of 1,358 touched on 17 August 2020.

Over the past one year, shares of the company have gained 63% as compared to 42% gains in BSE Sensex.

Pidilite has recorded a stellar performance financially and on the bourses, despite the pandemic. Strong demand from urban regions and the consolidation of new business has helped drive the revenue growth.

At the current price of 2,223, the company commands a marketcap of 1,129.4 bn.

Pidilite Industries share price
View Full Image
Pidilite Industries share price

About Pidilite Industries

Pidilite Industries is a leading manufacturer of adhesives and sealants, construction chemicals, craftsmen products, DIY products, and polymer emulsions in India.

Most of Pidilite’s products have been developed through strong in-house R&D. Its brand name Fevicol has become synonymous with adhesives to millions in India and is ranked amongst the most trusted brands in the country.

Some of the company’s other major brands are M-Seal, Fevikwik, Fevistik, Roff, Dr. Fixit, Fevicryl, Motomax, Hobby Ideas, Araldite.

Pidilite earns about 52.5% of its revenues from adhesives & sealants category, followed by construction & paint chemicals, and art & craft materials industrial adhesives.

In total, the company produces close to 500 products across brands.

(This article is syndicated from

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Updated: 12 Aug 2021, 05:05 PM IST
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