Pidilite Shares Hit Record High As Operating Performance Improves In Q3
Diversified product mix and lower input costs aided Pidilite’s Ebitda—a measure of operating performance—in the December quarter.
Pidilite Industries Ltd.’s operating performance improved in the December quarter of the ongoing fiscal due to a diversified product mix and lower input costs, according to its Managing Director Bharat Puri.
Shares of the Fevicol maker rose as much as 3.23 percent intraday to a record high of Rs 1,545.00 apiece, a day after the company’s announced its quarterly results.
“We continuously on a regular basis keep upscaling our product mix, so this is volume and mix,” Puri told BloombergQuint. “The largest part of that (expansion in Ebitda) is simply benign input costs.” Earnings before interest, taxes, depreciation and amortisation is a measure of a company’s operating performance.
Net profit of the adhesives maker rose 55.70 percent year-on-year to Rs 341.80 crore in the third quarter of 2019-20 on the back of revenue that increased 4.3 percent to Rs 1,926.60 crore. Analysts polled by Bloomberg had estimated the company’s bottom line at Rs 300 crore and top line at Rs 1,920 crore.
Pidilite Q3 Results 2019-20: Key Highlights (YoY)
- Revenue rose 4.3 percent to Rs 1,926.6 crore (Estimate Rs 1,920 crore).
- Net profit rose 55.7 percent to Rs 341.8 crore (Estimate Rs 300 crore).
- Ebitda rose 35.8 percent to Rs 463.2 crore (Estimate Rs 414 crore).
- Margin stood at 24 percent versus 18.5 percent (Estimate 21.6 percent).
WATCH | MD Bharat Puri On Pidilite’s Q3 Results
“We’ve always guided that we will maintain our margins at 20-24 percent mark on a standalone basis. We are at the upper end of that range,” Puri said. “Across the board, we have not taken any price cuts. But wherever price corrections are required on a regional basis on certain product lines, we continue to do that.”