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Pidilite Reports a Decreased Profit in Q4FY22 Owing to Rising Material Costs and Supply Issues

The economic disclosures for the year and quarter ended March 31, 2022, have indeed been announced by Pidilite Industries Limited. Revenue increased by 34% year on year to INR 8,298 Cr, with fundamental market share and mix expanding by 20%. This was attributable to a 20% increase in the market and a combination of C&B (domestic C&B expanded by 21%) and B2B sales. The industry's sales revenue for the period reached INR 2,075 crores, up 12% over the corresponding period. EBITDA including non-operating revenue rises by 4% year on year to INR 1,612 Cr. EBITDA for the year ended quarter was INR 346 Cr, down 15% from the very same quarter the preceding year.

PBT (Earnings before Interest and Taxes and Extraordinary Items) grew by 12% year on year to INR 1,627 Cr. PBT for the month culminated at INR 397 Cr, up 6% within the same quarter the previous year. On a resembling basis (excluding dividends from subsidiaries), full-year PBT fell 2% and quarter PBT fell 20%. The net profit (PAT) improved by 17% year on year to Rs 1,269 Cr. PAT for the quarter was INR 318 Cr, up 15% across the same period the previous year. On a like-for-like basis (without distributions from affiliates), full-year PAT fell 1% and quarter PAT fell 20%.  The enterprise has suggested a dividend payout of Rs. 10 per share, which is entitled to the permission of the board at the general meeting.

The current year saw great revenue growth across divisions and regions, supported by a strong increase in volume. The expansion was prevalent throughout the Consumer and Bazaar (C&B) and Business to Business (B2B) divisions, with both experiencing density increases of over 20%. The concentration on strategic initiatives, development, and building a resilient and flexible distribution network benefited this significantly. Due to the pandemic and persistent inflation influencing customer requirements, the overall market witnessed valuation improvement with amounts remaining weak. As a function of variability and increased commodity prices, the revenues were nevertheless considerably affected by unexpected inflation in major raw commodities.

Scaled marketing changes helped to alleviate this. Despite the difficult economic condition, they continued to invest appropriately in our brands. C&B's domestic subsidiaries reported strong sales growth. Due to the obvious resurgence in property investment and building components industries, local subsidiaries’ B2B performance is trending in the right direction. Despite growing inflationary pressures and devaluation, overseas subsidiaries saw minor sales and profits. Over the year, they have been able to generate continuous and significant value and retail volume throughout various sectors and regions, as per Bharat Puri, Managing Director, Pidilite Industries Ltd, on the year-end and quarter performance.

They have managed their competitiveness extremely successfully even though significant production cost variability and supply challenges, owing to a combination of targeted marketing and integrated accounting measures. Owing to a massively expanded base (45% rise in the same quarter last year) and the pandemic restrictions in January, this quarter saw price-led growth with shipments being muted. In this quarter, input prices were at their highest level in some years. While there are urgent needs regarding inflationary pressures and their implications on market growth, they will remain optimistic about the home maintenance sector's medium and longer possibilities and remain devoted to delivering sustainable and profitable amounts of high expansion.


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