Pidilite slips on weak Q3 show, demand in rural, semi-urban areas under strain
Operating margins of the company fell 16.5 percent in the quarter versus 18.9 percent in the year-ago period due to high cost inventory
January 25, 2023 / 10:53 AM IST
Pidilite Industries: Pidilite Industries Q3 profit tanks 14% to Rs 308 crore on lower operating margin. Revenue grows 5%. The adhesives, sealants and construction chemicals manufacturer has reported a 14.3% year-on-year decline in consolidated profit at Rs 307.7 crore for quarter ended December FY23, impacted by lower operating margin. Revenue grew by 5.2% to Rs 2,998 crore compared to year-ago period with C&B business growing at 7%, as in Q3FY22, it had registered very high growth as a result of trade increasing inventory stocking because of substantial price increases in the quarter. Overall numbers missed analysts' expectations.
Shares of Fevicol-maker Pidilite Industries took a beating on January 25 after the company's net profit tanked 14 percent on-year to Rs 308 crore on lower operating margin.
Revenue grew by 5.2 percent to Rs 2,998 crore over the last year with Consumer and Bazaar (C&B) business growing 7 percent on a high base. It had registered very high growth in the third quarter as a result of trade channels stocking inventory ahead of price increases.
At 10:30am, the stock was quoting at Rs 2,321 on the NSE, lower by 2.5 percent. Trading volumes at 414,851 were double the 20-day average volumes of 280,218.
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