Cost inflation has hurt the company’s track record of solid earnings growth
Pidilite has increased the prices by 75% of raw material cost inflation
Commodity cost inflation has hit adhesives maker Pidilite Industries Ltd hard. High procurement costs of key input chemical vinyl acetate monomer (VAM) dragged consolidated gross margin to a multi-quarter low of 41% in the September quarter (Q2FY23). VAM’s contribution to the Fevicol maker’s total raw material basket is 20-25%.