Pidilite Industries Limited, manufacturer of adhesives, sealants, and construction chemicals, today announced its financial results for the quarter ended June 30, 2021.
Consolidated net profit soared 1275.72 percent to Rs 217.64 crore on 120.63 percent jump in revenue from operations to Rs 1,936.79 crore in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21
Consolidated profit before tax surged 814.87 percent to Rs 289.74 crore in Q1 FY22 as against Rs 31.67 crore in Q1 FY21. EBITDA (before non-operating income) stood at Rs 357 crore, climbing 429 percent over the same quarter last year. On a like-to-like basis (excluding PAPL), EBITDA grew by 396 percent.
Among segments, Consumer & Bazaar business grew 111.70 percent to Rs 1,486.24 crore in Q1 FY22 from Rs 702.02 crore in Q1 FY21. Business to Business revenues climbed 156.08 percent to Rs 482.02 crore in Q1 FY22 from Rs 188.23 crore in Q1 FY21.
The quarter’s robust performance was over the previous year’s lower base on account of nationwide lockdown. The second wave of COVID-19 disrupted business continuity from second half of April 21 with gradual closure across the country for May 21 and part of June.
"We have seen demand recovery since mid-June post lockdown with most markets returning to normalcy across town classes and geographies. While Consumer and Bazaar businesses has witnessed recovery led by adhesive, construction chemicals and DIY portfolio, recovery in Business to Business is on account of resurgence in industrial activity.
"Gross Margins have contracted on account of sharp escalation in input costs partially mitigated by judicious pricing. While Domestic subsidiaries also suffered as a consequence of the lockdown in May, we have seen a sustained recovery in demand from June onwards.
"Overseas subsidiaries continued their positive momentum and reported high double-digit constant currency revenue growth as well as strong earnings growth."
Commenting on the quarter performance, Bharat Puri, Managing Director, Pidilite Industries Ltd, 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."
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