Pidilite Industries Sept quarter surges 18.8% to Rs 5.35 billion
Mumbai: Pidilite Industries exceeded profit expectations for the second quarter, driven by a slower rise in input costs, Reuters reported.
The company reported a consolidated net profit of 5.35 billion rupees ($63.7 million) for the quarter ending September 30, marking an 18.8% increase compared to the previous year, according to the report.
This surpassed analysts' average estimate of 5.29 billion rupees, according to LSEG data.
Revenue grew by 5.2% to 32.35 billion rupees, while total expenses increased by 3.3% to 25.66 billion rupees, with material costs rising by just 1.7%.
A decline of 11% in the price of vinyl acetate monomer, a key raw material for adhesives, contributed to the rise in profits, according to a Jefferies pre-earnings note.
The company's consumer and bazaar segment, which accounts for nearly 80% of its revenue, saw a 2.9% growth, while the business-to-business segment grew by 14.3%.
Pidilite said input prices remained favourable, leading to an expansion of its gross margin by 281 basis points compared to the same quarter last year.
Despite the positive earnings, shares of Pidilite Industries closed 1.2% lower before the results were announced.
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