Pidilite Industries Q4 Review - Remarkable Sales Performance; Severe Pressure On Margin Ahead: Motilal Oswal
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Motilal Oswal Report
Pidilite Industries Ltd. delivered a strong topline performance in Q4 FY21.
Even if we were to exclude the addition of the first full quarter of the Huntsman business (4.5% of sales in Q4 FY21), which was acquired in November 2020, sales grew by 37.6% YoY.
Vinyl acetate monomer prices have doubled in April-May 2021 from consumption cost of $970/ million tonne in Q3 FY21.
The management guided that despite price increases and cost savings, margin will be impacted over the next two to three quarters until material cost stabilise some time in H2 FY22.
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