An employee glues a section of leather to apply to a Kempton canvas tote bag at the Alfred Dunhill Ltd. London Leather Workshop in London, U.K. (Photographer: Chris Ratcliffe/Bloomberg)

Slower Market Conditions Persist In Ongoing Quarter, Says Pidilite Industries

Pidilite Industries Ltd. will continue to witness lower volume growth in the June quarter on account of a slowdown in market conditions, according to its Managing Director Bharat Puri.

“Market conditions have definitely slowed down in the near-term,” Puri told BloombergQuint. “Also, there is some impact on the business in the present quarter as a result of long elections, availability [shortage] of labour and cash.”

The Fevicol-brand adhesive maker remains “cautiously optimistic” for the financial year ending 2020, said Puri, adding that moderation in input costs such as vinyl acetate monomer may improve the company’s operating margin.

Key Highlights (Q4, YoY)

  • Revenue up 10 percent to Rs 1,639 crore.
  • Net profit down 4 percent to Rs 235 crore.
  • Ebitda up 2 percent to Rs 279 crore.
  • Margin contracted 150 basis points to 17 percent.

Shares of the company advanced 3 percent intraday to Rs 1,173.50 apiece compared to a 0.5 percent gain in the Nifty.

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Also read: Pidilite Industries’ Volume Growth Slows To Six-Quarter Low