On Wednesday, the leading stock in the adhesives sector experienced a 6 percent decline, dropping to ₹2,777.05 per share, following a 41% decline in its net profit compared to the previous quarter.
Pidilite Industries Ltd belongs to the large-cap category of stocks, with a market capitalization of ₹ 1,43,176 crores.
Pidilite Industries Ltd announced a consolidated net profit of ₹304 crores for the quarter ending March 2024 (Q4FY24), marking a 41% decline from ₹511 crores recorded in Q3FY24. Additionally, the company’s total revenue from operation for the same quarter declined by 7%, reaching ₹3,130 crores compared to ₹2,902 crores in the previous year’s corresponding quarter.
For the fiscal year 2023-24, the company reported a consolidated revenue of ₹12,383 crores, up 5% from ₹11,799 crores in FY22-23. Similarly, the net profit for the fiscal year grew by 36%, standing at ₹1,747 crores compared to ₹1,289 crores in the previous fiscal year. As per the company’s filing.
At the operational level, there was a significant increase in EBITDA, rising by 25.7% to ₹577 crore in the fourth quarter of this fiscal compared to ₹459 crore in the corresponding period of the previous fiscal. The EBITDA margin for the quarter stood at 20.5%, up from 18.4% last year.
In the fiscal year 2023-24, the company’s revenue breakdown was as follows: 55.5% from Adhesives & Sealants segment, 21.0% from Construction & Paint Chemicals, 6.0% from Art & Craft Materials, 8.4% from Industrial Resins and Construction chemicals (Project), and 5.2% from Industrial Adhesives.
The company board of directors has recommended a dividend of ₹16 per equity share of ₹1 each for the financial year ended March 31, 2024.
Pidilite Industries Limited is a leading manufacturer of adhesives and sealants, construction chemicals, craftsmen products, DIY products, and polymer emulsions in India. The company has more than 6,150 stock-keeping units with more than 900 products.
The company markets its products under the brand names Fevicol, M-Seal, Fevikwik, Fevistik, Roff, Dr. Fixit, Fevicryl, Motomax, Hobby Ideas, and Araldite. The company plans to invest up to ₹ 100 crore in a period of two years for the growth of its business.
The company has a market share of over 70% in the Indian adhesive market. And also has a significant international presence, with subsidiaries in the United States, Europe, the Middle East, and Africa.
In the recent shareholding, the company promoters hold 69.78 percent stake in the company, while Foreign Institutional Investors hold 11.31 percent and Domestic Institutional Investors hold 8.93 percent.
In the last quarter, Pidilite Industries Limited has partnered with Italy-based Syn-Bios, known for R&D and global marketing in the leather tanning industry. Tol enhance Pidilite Industries’ product range, in extensive leather chemical products in India, Bangladesh, Vietnam, Nepal, and Sri Lanka.
Written by Omkar Chitnis
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