Pidilite Industries Ltd Management Discussions.


Net Sales of the Company grew by 9.8%

On a comparable basis (after reflecting impact of GST for the full year)

Net Sales grew by 12.0%

With sales volume & mix growth of 11.2%.

"EBIDTA" (earnings before interest, taxes, depreciation, exceptional items and foreign exchange differences) excluding non-operating income growth was lower at 5.3% on the back of input cost led contraction in gross margins and advertising and sales promotion cost increase.

Profit before exceptional item and tax increased by 7.4%.

Profit after tax grew by 23.4% and includes excess tax provision of Rs.46.5 crores of earlier years now written back, whereas profit after tax for previous year was after impairment of investments in subsidiaries of Rs.94.3 crores.


Consolidated net sales grew by 8.0%.

On a comparable basis (after reflecting impact of GST for the full year and excluding sales of Cyclo division of Pidilite USA Inc., which was sold by Pidilite USA Inc. in June, 2017) consolidated net sales grew by 11.5%.

On a constant currency basis, the sales (excluding Cyclo division of Pidilite USA, Inc) of overseas subsidiaries declined by 1.2% over last year. On an overall basis, the overseas subsidiaries reported profit before tax (excluding Cyclo division of Pidilite USA, Inc) of Rs.6.3 crores as compared to loss of Rs.13.3 crores last year.

The domestic subsidiaries (excluding CIPY Poly Urethanes Pvt Ltd which was acquired in the fourth quarter) reported 21.6% growth in Sales and 29.1% growth in EBITDA. Profit before tax is Rs.28.5 crores as compared to 17.2 crores last year.

The Company and Jowat SE have entered into a technical collaboration aimed at providing a comprehensive range of Thermoplastic Hot Melt adhesives for catering to the requirements of joineries and industrial consumers. The Company will also handle the sales and distribution of the entire range of Jowat adhesives in India and certain other neighboring countries including Nepal, Sri Lanka and Bangladesh. Jowat SE is well known for its high end adhesives used by modular and other wooden furniture manufacturers and industrial customers in packaging. The products are also used by automotive, textile and other segments, for a wide variety of applications.

The Company alongwith Fevicol Company Ltd. (wholly owned subsidiary of the Company) jointly acquired 70% stake in equity shares of CIPY Poly Urethanes Pvt. Ltd. (‘CIPY). CIPY was incorporated on 29th November, 1994 and it is engaged in the business of manufacturing and selling of floor coatings using polyurethanes,epoxies, polyurea and polyaspartic polymers. This acquisition will help to participate in the growth of the resin flooring and floor coatings market. CIPY reported26.7 crores of sales and Rs.2.2 crores of EBITDA from the date of acquisition till 31st March 2018.