Pidilite Industries Ltd., a specialty chemicals manufacturer based in India announced its results for the first quarter ended June 30, 2021.
Q1 Results- QoQ
The company’s net profit declined 28.1% to Rs 220.07 crores ($29.6 million) for the period ended June 30, 2021 as against net profit of Rs 306.19 crores ($41.2 million) for the previous quarter.
Net sales decreased 14% to Rs 1942.91 crores ($261.2 million) during the period ended June 30, 2021 as compared to Rs 2252.85 crores ($302.9 million) during the previous quarter.
Q1 Results- YoY
The company’s net profit grew 722% to Rs Rs 220.07 crores ($29.6 million) for the period ended June 30, 2021 as against net profit of Rs 26.78 crores ($3.6 million) for the prior-year quarter.
Net sales increased 116.4% to Rs 1942.91 crores ($261.2 million) during the period ended June 30, 2021 as compared to Rs 897.84 crores ($120.7 million) during the prior-year quarter.
Pidilite Industries saw a demand recovery since mid-June 2021 post lockdown with most markets returning to normalcy across town classes and geographies.
Gross margins have contracted on account of sharp escalation of input costs partially mitigated by judicious pricing. While domestic subsidiaries also suffered as a consequence of the lockdown in May 2021, the company saw a sustained recovery in demand from June 2021 onwards.
Overseas subsidiaries continued its positive momentum and reported high double-digit constant currency revenue growth as well as strong earnings growth.
Bharat Puri, the managing director (MD) of Pidilite Industries, has 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. Going forward, we remain cautiously optimistic on a sustained demand recovery. Our focus remains on delivering volume led competitive and profitable growth as well as the health and safety of our ecosystems.”
Pidilite Industries Ltd is engaged in the business of manufacture and selling of adhesive, industrial and construction chemicals.