Pidilite Industries Reports 35% Jump in Q2 Profit, Ventures into Lending Business

9 Nov 2023 , 11:28 AM

Pidilite Industries reports a consolidated net profit of 4.5 billion rupees ($54.1 million) for Q2, a 35% increase from the previous year. The surge in profit is attributed to lower costs, with expenses falling nearly 4%, while revenue grew by 2.2%.

Pidilite Industries, a major player in India’s adhesive market, announces its entry into the lending business. The company acquires Pargro Investments for 100 million rupees for its new lending venture and plans to invest one billion rupees over the next two years.

Pargro Investments, a non-banking financial company, is currently debt-free and does not have any lending operations as of Oct. 31. The new lending business aims to provide credit to the domain ecosystem to support their business growth, according to the company’s statement.

Pidilite Industries had previously anticipated volume-led growth, citing increased construction activity and stable input prices. Revenue from the consumer and bazaar segment, constituting over 80% of Pidilite’s topline, experienced a 3% growth, while revenue from the business-to-business segment declined by over 1%.

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