Pidilite Industries gains 5% as Q4 earnings beat estimates
Pidilite Industries hit a new high of Rs 1,137, up 5% on the BSE, after the company reported a better than expected 57% year on year growth in consolidated net profit at Rs 2.48 billion in March quarter (Q4FY18) on double digit volume growth. It had profit of Rs 1.57 billion in a year ago quarter.
Operational revenue during the quarter under review grew 14.5% at Rs 14.85 billion against Rs 12.95 billion in the corresponding quarter of previous fiscal. Other income nearly doubled to Rs 521 million from Rs 286 million.
Analysts on an average had expected profit of Rs 2.25 billion and revenue of Rs 14.4 billion for the quarter.
"Gradually improving demand conditions led to another quarter of double digit volume growth. While commodity cost inflation as a result of rising input prices and currency headwinds is a concern, we remain focused on delivering steady volume driven growth,” said Bharat Puri, managing director, Pidilite Industries.
The board has recommended a dividend of Rs 6 per equity share of Re 1 each for the financial year ended March 31, 2018.
Pidilite is a dominant play in India’s adhesive market with a market share of around 70% in its leading brand categories (Fevicol) in the organized segment.
In past three month, Pidilite has outperformed the market by surging 26% as compared to 2% rise in the S&P BSE Sensex.
At 11:36 am; the stock was trading 4% higher at Rs 1,122 on the BSE against 0.54% rise in the benchmark index. The trading volumes on the counter more than doubled with a combined 1.44 million shares changed hands on the BSE and NSE so far.