Pidilite Posts Strong Growth in Q1 on Robust Volumes, Announces Bonus Issue

A sharp rise in sales volume helped Pidilite Industries Ltd. report its highest revenue growth in 11 quarters for April–June, with both revenue and profit rising strongly on year.

The adhesives and sealants major posted a 10.5% on-year rise in consolidated revenue to ₹37.5 billion, while net profit rose 18.6% to ₹6.7 billion. In the year-ago quarter, revenue was ₹34 billion and profit stood at ₹5.7 billion. Compared to the March quarter, revenue rose from ₹31.4 billion and profit from ₹4.2 billion.

The growth was driven by an underlying volume increase of 9.9% across categories and geographies. The consumer and bazaar segment, which typically contributes around 80% of revenue and 87% of pre-tax profit, saw volume growth of 9.3%. The business-to-business vertical grew 12.6%, marking its eighth straight quarter of double-digit expansion.

Sales in the consumer and bazaar segment rose 9.7% on year to over ₹30 billion, while business-to-business sales increased 11.2% to ₹8.1 billion. Pre-tax profit from consumer and bazaar operations rose 17.6% to ₹9.5 billion, and that from B2B operations grew 20.5% to ₹1.3 billion.

Domestic subsidiaries posted 11.5% sales growth, with EBITDA rising 31.7% on the back of lower input costs. Overseas subsidiaries reported a 6.4% increase in sales and 9% growth in EBITDA.

While gross margins were flat on year, the company’s EBITDA margin expanded by 101 basis points. Consolidated EBITDA rose 15.8% to ₹9.4 billion.

To mark the 101st birth anniversary of founder B.K. Parekh, the board announced a 1:1 bonus share issue and a special interim dividend of ₹10 per share. The record date is August 13.