Robust double digit revenue growth in this quarter was led by staggered pricing actions and steady demand conditions.
Growth was broad based across Consumer and Bazaar (‘C&B’) and Business to Business (‘B2B’) with growth in urban geographies outpacing rural geographies. C&B reported growth across all categories and B2B growth led by continued momentum in industrial activities.
Gross Margins continues to get impacted on account of unabated increase in input cost. The company continued investments in its brands and has maintained EBITDA margins within its historic range through judicious pricing, rising volumes, and operational efficiencies.
Domestic subsidiaries in C&B reported good sales growth. Performance of domestic subsidiaries in B2B has improved sequentially on account of recovery in real estate and construction related activities.
FINANCIAL PERFORMANCE
Consolidated Performance
- Net sales at Rs 2,841 Cr grew by 24% over the same quarter last year. Net sales for the nine months ended stood at Rs 7,382 Cr and grew by 47% over the same period last year.
- EBITDA before non-operating income at Rs 550 Cr declined by 14% over the same quarter last year. EBITDA for the nine months ended stood at Rs 1,457 Cr and grew by 19% over the same period last year.
- Profit before Tax and Exceptional items (PBT) at Rs 487 Cr declined by 19% over the same quarter last year. PBT for the nine months ended stood at Rs 1,268 Cr and grew by 14% over the same period last year.
- Profit after tax (PAT) at Rs 359 Cr declined by 20% over the same quarter last year. PAT for the nine months ended stood at Rs 952 Cr and grew by 16% over the same period last year.
Standalone Performance
- Net sales at Rs 2,407 Cr grew by 24% over the same quarter last year with underlying sales volume and mix growth of 9.4%. This was driven by 9% growth in sales volume and mix of C&B (domestic C&B grew by 10%) and 13% growth in B2B. Net sales for the nine months ended stood at Rs 6,224 Cr and grew by 44% over the same period last year.
- EBITDA before non-operating income at Rs 480 Cr declined by 16% over the same quarter last year. EBITDA for the nine months ended stood at Rs 1,266 Cr and grew by 11% over the same period last year.
- Profit before Tax and Exceptional Items (PBT) at Rs 434 Cr declined by 21% over the same quarter last year. PBT for the nine months ended stood at Rs 1,231 Cr and grew by 14% over the same period last year. On a like to like basis (excluding dividend from subsidiary), PBT grew by 5% for the nine months period.
- Profit after Tax (PAT) at Rs 323 Cr declined by 21% over the same quarter last year. PAT for the nine months ended at Rs 950 Cr and grew by 18% over the same period last year. On a like to like basis (excluding dividend from subsidiary), PAT grew by 3% for the nine months period.
Q3 2021-22:
Commenting on the quarter performance, Mr. Bharat Puri, Managing Director, Pidilite Industries Ltd, said:
“This quarter registered strong broad-based volume and value growth across categories and businesses. Continued, unprecedented inflation in input costs necessitated calibrated pricing actions as well as the need to manage costs aggressively to maintain margins in a healthy range. Going forward, we expect near-term demand conditions to be a little more challenged, given the disruptions as a result of the pandemic as well as input inflation to continue. However, we see demand conditions improving as well as input costs moderating by the end of the current quarter/beginning of the new financial year. We remain confident of the medium to long-term potential of the Indian home improvement sector and in our ability to deliver profitable volume growth.”
