Pidilite Industries Ltd, an Indian specialty chemicals manufacturer announced its results for the third quarter ended Dec 31, 2022.
Q3 Results- QoQ
The company’s net profit declined by 8.5% to Rs 3.04 billion for the period ended Dec 31, 2022 as against net profit of Rs 3.32 billion for the previous quarter.
Net sales decreased 0.6% to Rs 30.03 billion during the period ended Dec 31, 2022 as compared to Rs 30.22 billion during the previous quarter.
Q3 Results- YoY
The company reported 15.2% drop in net profit to Rs 3.04 billion for the period ended Dec 31, 2022 as against net profit of Rs 3.58 billion for the prior-year quarter.
Net sales grew 5.1% to Rs 30.03 billion during the period ended Dec 31, 2022 as compared to Rs 28.55 billion during the prior-year quarter.
The fall in quarterly profit was due to higher input costs and weak demand.
“Rising inflation has forced cash-strapped consumers in rural markets and smaller towns and cities to tighten budgets as they struggled to recover from the economic impact of COVID-19. Meanwhile, demand in rural and semi-urban areas remain under strain,” Managing Director Bharat Puri said in a statement.
“While input prices have moderated, this is still to reflect in our gross margins as we were consuming high-priced inventory this quarter,” Puri said.
9 Months – YoY
The company reported 3.9% growth in net profit to Rs 9.9 billion for the period ended Dec 31, 2022 as against net profit of Rs 9.53 billion for the prior-year 9 months period.
Net sales increased 22.8% to Rs 91.36 billion during the period ended Dec 31, 2022 as compared to Rs 74.39 billion during the 9 months period last year.
Pidilite Industries Ltd is a leading player in the Indian chemical industry engaged in the manufacture and sale of specialty chemicals such as adhesives and sealants.