Pidilite Industries’ Volume Growth Slows To Six-Quarter Low

Pidilite Industries Ltd.’s volume growth for the three months ended March fell to a six-quarter low.

The maker of Fevicol adhesive’s revenue grew 10 percent year-on-year to Rs 1,639 crore. That was due to volume growth of mere 2.5 percent in its mainstay consumer segment in the period—an almost 80 percent decline over last quarter, according to company data cited by ICICI Securities. The segment contributes nearly 85 percent to the company’s revenue.

Volumes in the last six quarters were driven by expansion in distribution network and entry into newer businesses such as waterproofing, floor coatings and tile adhesives.

Investors and analysts will focus on commentary on demand outlook and growth in the domestic business, said Latika Chopra, research analyst at JP Morgan. Any near-term challenge will pose significant earnings risk, she said.