Pidilite Industries (PIDILITIND) Q1 24/25 earnings summary

Executive summary

• Underlying volume growth reached 9.6% for the quarter, with Consumer & Bazaar at 8% and B2B at 18%, driven by both domestic and export segments; Emerging India outpaced urban markets.

• Value growth lagged volume due to price reductions from softer input costs, but the gap is narrowing.

• Achieved double-digit unit volume growth despite election impact and severe heat wave.

• Continued investments in brands, manufacturing, and distribution; working capital improved, supporting strong cash flows.

• Standalone and consolidated unaudited financial results for the quarter ended 30 June 2024 were approved by the Board and reviewed by auditors, with unmodified opinions issued for both.

Financial highlights

• Consolidated Q1 FY25 net sales: ₹3,384 Cr (up 3.7% YoY); EBITDA: ₹813 Cr (up 15.0% YoY); PAT: ₹571 Cr (up 20.6% YoY).

• Standalone revenue from operations was ₹3,145.84 crore, up from ₹2,963.53 crore year-over-year.

• Gross margin expanded by 465 bps year-over-year due to lower input prices; EBITDA margin improved by 187 bps YoY to 24.6%.

• Working capital in absolute terms lower than March 2024, resulting in strong cash flows.

• Standalone net profit for the quarter was ₹551.57 crore, compared to ₹467.51 crore in the same quarter last year.

Outlook and guidance

• Expect value and volume growth to converge by the second half if pricing remains stable and input costs do not fluctuate significantly.

• Double-digit underlying volume growth remains the target for the full year, barring unforeseen events.

• Optimistic on market demand due to healthy monsoon and upcoming festival season; plans to continue investing in growth initiatives and supply chain resilience.

• Margins are expected to remain at the higher end of the 20-24% range if input prices stay benign.

• Rural growth is expected to continue outpacing urban, with a 1.5x internal objective.