Pidilite declines as Q3 PAT contracts 20% YoY

Net sales grew by 24% to Rs 2,841 crore in Q3 FY22 over Q3 FY21.

EBITDA before non-operating income in the third quarter was Rs 550 crore, which is lower by 14% over the same quarter last year.

Profit before tax and exceptional items (PBT) in Q3 FY22 stood at Rs 487 crore, down 19% YoY.

Pidilite said that robust double-digit revenue growth in this quarter was led by staggered pricing actions and steady demand conditions. Growth was broad-based across Consumer and Bazaar (C&B) and Business to Business (B2B) with growth in urban geographies outpacing rural geographies. C&B reported growth across all categories and B2B growth led by continued momentum in industrial activities.

Domestic subsidiaries in C&B reported good sales growth. Performance of domestic subsidiaries in B2B have improved sequentially on account of recovery in real estate and construction related activities.

Gross margins continue to get impacted on account of unabated increase in input cost. The company continued investments in its brands and has maintained EBITDA margins within the historic range through judicious pricing, rising volumes, and operational efficiencies.

On a standalone basis, Pidilites net profit declined by 21% to Rs 323 crore despite 24% rise in net sales to Rs 2,407 crore in Q3 FY22 over Q3 FY21. The underlying sales volume and mix growth was 9.4%. This was driven by 9% growth in sales volume and mix of C&B (domestic C&B grew by 10%) and 13% growth in B2B.

Bharat Puri, managing director, Pidilite Industries, said: ?This quarter registered strong broad-based volume and value growth across categories and businesses. Continued, unprecedented inflation in input costs necessitated calibrated pricing actions as well as the need to manage costs aggressively to maintain margins in a healthy range.

Going forward, we expect near-term demand conditions to be a little more challenged, given the disruptions as a result of the pandemic as well as input inflation to continue. However, we see demand conditions improving as well as input costs moderating by the end of the current quarter/beginning of the new financial year.?

Pidilite Industries is a manufacturer of adhesives and sealants, construction chemicals, craftsmen products, DIY (Do-It-Yourself) products and polymer emulsions in India.

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