Pidilite Industries Q4FY16 consolidated net profit declines 89% yoy to Rs.152.60 crore : Beats Estimates

India Infoline News Service | Mumbai | May 19, 2016 19:59 IST

The company’s consolidated revenue stood at Rs. 1,240.85 crore, up 18.91% yoy but down 7.34% qoq.

Pidilite Industries
Pidilite Industries , largest adhesive manufacturer, reported consolidated net profit of Rs.152.60 crore for the quarter ended March 31, 2016, registering growth of 89.24% yoy, but decline of 17.83% qoq. The company’s revenue stood at Rs. 1,240.85 crore, up 18.91% yoy but down 7.34% qoq.

Its consolidated core operating profit of Rs. 238.37 crore for the quarter, clocked growth of 78.07% yoy but decline of 19.27% qoq. Operating profit margin for the current quarter at 19.21% expanded by 638 bps yoy but contracted by 284 bps qoq.

For the year ended March 31, 2016, the company reported consolidated net profit of Rs. 755.55 crore, growing by 47.45% yoy. Its consolidated revenue for the period stood at Rs. 5,369.45 crore, registering growth of 10.84% yoy.

Pidilite Industries Ltd's core operating profit stood at Rs. 1,178.71 crore, recording growth of 51.78% yoy. Operating margin for the current period at 21.41% expanded by 556 bps yoy.

On standalone basis,Pidilite Industries Ltd, reported standalone net profit of Rs.115.04 crore for the quarter ended March 31, 2016, registering growth of 48.98% yoy, but decline of 38.05% qoq. The company’s revenue stood at Rs. 1,086.91 crore, up 12.27% yoy but down 7.63% qoq.

Its standalone core operating profit of Rs. 225.06 crore for the quarter, clocked growth of 61.62% yoy but decline of 21.34% qoq. Operating profit margin for the current quarter at 20.71% expanded by 633 bps yoy but contracted by 361 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 703.04 crore, growing by 40.09% yoy. Its standalone revenue for the period stood at Rs. 4,734.50 crore, registering growth of 7.65% yoy.

Pidilite Industries Ltd's core operating profit stood at Rs. 1,120.26 crore, recording growth of 46.81% yoy. Operating margin for the current period at 23.11% expanded by 576 bps yoy.

Pidilite Industries -  Q4FY16 - Strong result

Pidilite Industries’ net sales grew by 18.9% to Rs. 1,241 crore, 6.1% lower than IIFL estimate of Rs1,322 crore. The company reported double digit sales growth led by 20.7%/7.5%, growth in Consumer bazaar/industrial products, respectively. However, the others declined by 22.1% in Q4FY16. Gross margin improved by 853bps to 55.3% on the back of benign input cost. Other expenses/employee cost increased by 107bps each which suppressed EBITDA margin to an improvement of  638bps to 19.2%, which was 389 bps lower than IIFL estimate of 23.1%.

Strong operational performance led to a 78.1% growth in EBITDA to Rs238cr, 22% lower than IIFL estimate of Rs. 305 crore. Strong operational performance led to a 78.1% growth in EBITDA to Rs. 238 crore, 22% lower than IIFL estimate of Rs 305 crore. Despite higher tax outgo of 29.6% as against 22.8% in Q4FY15, PAT grew by 89.2% to Rs. 153 crore, 20.9% lower than IIFL estimate.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Consolidated Revenue 1240.85 1191.36 4.15
Consolidated Net Profit 152.60 128.75 18.52

Bloomberg estimated the company’s consolidated net profit at Rs. 124.28 crore.

Corporate Action: Pidilite Industries has recommended a final dividend of Rs. 0.50 per share of Re. 1 each for the financial year ended March 31, 2016. Subject to the approval of the shareholders at the Annual General Meeting, the final dividend will be paid to the shareholders within a period of 30 days from the date of the Annual General Meeting. Together with the interim dividend of Rs. 3.65 per share, the total dividend works out to Rs. 4.15 per share of Re. 1 each.
Stock Commentary:

Pidilite Industries Ltd is currently trading at Rs. 637.35, up by 20.8 points or 3.37% from its previous closing of Rs. 616.55 on the BSE.

The scrip opened at Rs. 630.1 and has touched a high and low of Rs. 641.8 and Rs. 629.3 respectively. So far 1044429(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 31609 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 647.55 on 22-Feb-2016 and a 52 week low of Rs. 507.5 on 25-Aug-2015. Last one week high and low of the scrip stood at Rs. 620.8 and Rs. 596.05 respectively.

The promoters holding in the company stood at 69.59 % while Institutions and Non-Institutions held 19.66 % and 10.75 % respectively.

The stock is currently trading below its 50 DMA.



***Note: This is a NSE Chart

 

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