Pidilite Industries shares climb 2% despite the company reporting a 95% fall in Q1 profit

Shares of Pidilite Industries climbed over 2 percent in morning trade on August 7 even after the company reported a 95 percent year-on-year (YoY) fall in June quarter consolidated net profit at Rs 16 crore.

The company's net sales for the quarter stood at Rs 873 crore, down 56 percent YoY while EBITDA before non-operating income stood at Rs 67 crore, down 85 percent YoY.

The company said Q1 performance was significantly impacted by continued lockdowns due to the coronavirus pandemic.

"On an overall basis, we had a near-complete closure on April 20 with recovery from May 20 onwards (broadly 50 percent of outlets being open) and June (saw broadly 80 percent of outlets open). The recovery has continued in July," said the company.

Brokerage firm Motilal Oswal Financial Services has a 'neutral' call on the stock and said that the company's performance was severely affected by lockdown but still is better than expected.

"While near-term demand appears uncertain as a result of the ongoing pandemic and the resultant restrictions across various parts of the country, the company remains focused on restoring volumes and ensuring profitable growth," Motilal Oswal said.

The scrip traded 2.12 percent higher at Rs 1360.15 on BSE around 10:25 hours.