Pidilite Industries reports first quarter results.

Pidilite Industries Limited, India's leading manufacturer of adhesives, sealants and construction chemicals today announced its financial results for the quarter ended June 30, 2020.

Q1 performance was significantly impacted by continued lockdowns due to the pandemic. On an overall basis, we had a near complete closure in April 20 with recovery from May 20 onwards (broadly 50% of outlets being open) and June (saw broadly 80% of outlets open). The recovery has continued in July.

From a geographical perspective, the metros have been the most impacted. The Western and Northern regions are more impacted than South and East. Consumer and Bazaar businesses have seen a swifter demand recovery, especially in rural areas and semi urban towns. We are seeing a stronger recovery in construction chemicals and DIY products. Business to Business segment is seeing a slower recovery.

While performance of our International subsidiaries has been impacted due to the pandemic more so in the SAARC region than the rest of the world, we have seen a recovery in June and July.

As a result of periodic restrictions, our plants are operating at a capacity utilization of 75% to 80% and operating efficiencies of our warehouses have been impacted on and off. Most of the employees are working from home and necessary office connectivity is in place.

FINANCIAL PERFORMANCEConsolidated Performance

- Net sales at Rs 873 Cr declined by 56% over the same quarter last year.
- EBITDA before non-operating income stood at Rs 67 Cr a decline of 85% over the same quarter last year.
- Profit before Tax (PBT) at Rs 32 Cr declined by 93% over the same quarter last year.
- Profit after tax (PAT) at Rs 16 Cr declined by 95% over the same quarter last year.

Standalone Performance

- Net sales at Rs 768 Cr declined by 57% over the same quarter last year with underlying sales volume and mix decline of 58.3%. This was driven by 58.6% decline in sales volume and mix of Consumer & Bazaar and 53.7% decline in sales volume & mix of Business to Business.

- EBITDA before non-operating income stood at Rs 97 Cr and declined by 77% over the same quarter last year,

- Profit before Tax (PBT) at Rs 77 Cr declined by 82% over the same quarter last year.

- PAT at Rs 57 Cr declined by 80% over the same quarter last year. Effective tax rate for the period has been reduced from 32.5% to 26.3% due to reduction in corporate tax rate.

Commenting on the quarter performance, Mr. Bharat Puri, Managing Director, Pidilite Industries Ltd, said: Q1 2020-21: "This quarter's performance was significantly impacted by the lockdowns as a result of the pandemic. While April sales was completely impacted, we saw a partial recovery in May and a significant recovery in June. The recovery has continued in July. The profitability of the business was helped by softer input costs as well as stringent cost control measures undertaken across the organisation. While near term demand appears uncertain as a result of the continuing pandemic and the resultant restrictions across several parts of the country, we remain focused on restoring volumes and ensuring profitable growth".

Shares of PIDILITE INDUSTRIES LTD. was last trading in BSE at Rs.1331.85 as compared to the previous close of Rs. 1315.3. The total number of shares traded during the day was 77120 in over 7916 trades.

The stock hit an intraday high of Rs. 1334.6 and intraday low of 1307.05. The net turnover during the day was Rs. 101957318.

Source : Equity Bulls

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