Pidilite Industries Q4 Review - Input Cost Inflation Impacts Performance: ICICI Securities
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ICICI Securities Report
Pidilite Industries Ltd. reported sharp fall in Ebitda margin to 20.6% (our estimate: 21.8%), down 790 basis points QoQ led by steep decline in gross margins by 390bps QoQ on the back of substantial increase in vinyl acetate monomer and other input costs.
However, standalone consumer and bazaar volume growth remained robust at 45.3% YoY led by strong growth across major categories.
Consolidated revenue too was up 45.3% YoY at Rs 22.4 billion (our estimate: Rs 22.9 billion).
Business-to-business segment continued to recover sequentially.
Araldite reported strong double-digit growth but margins were impacted due to higher input cost.
We believe growth prospects remain robust on the back of market share gains, continuous innovation, increasing penetration in rural, do-it-yourself and e-commerce business.
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