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; double-digit UVG achieved despite election disruptions and heat waves.

• Rural (Emerging India) growth outpaced urban for the eighth consecutive quarter, with significant penetration and range expansion efforts.

• Continued investments in brands, manufacturing upgrades, and distribution expansion supported robust operational performance.

• 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 revenues for the quarter were INR 3,384 crores; standalone revenue from operations was ₹3,145.84 crore, both up year-over-year.

• Standalone EBITDA margin at 24.6%, up 187 bps from Q1 last year; gross margin expanded by 465 bps year-over-year due to lower input prices.

• Standalone net profit for the quarter was ₹551.57 crore, up from ₹467.51 crore year-over-year; consolidated net profit attributable to shareholders was ₹566.92 crore, up from ₹468.16 crore.

• Working capital improved, resulting in strong cash flows.

• Dividend payout for FY24 at 45.4%, with a final dividend of Rs 16.0 per share proposed.

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 for the coming quarters, supported by a healthy monsoon and festival season.

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

• Continued focus on core segments and operational efficiency is implied.