India's Pidilite Industries misses Q3 profit estimates on soft demand

Pidilite Industries

22/01/2025 14:27

Jan 22 (Reuters) - India's Pidilite Industries  PIDI.NS 
on Wednesday reported third-quarter profit below estimates, due
to weak urban and rural demand for adhesives and sealants.
    The company reported a consolidated net profit of 5.52
billion rupees ($64 million) for the three months ended Dec. 31,
compared to analysts' expectation of 5.91 billion rupees,
according to data compiled by LSEG.
    Construction-related demand remained subdued across India
due to pollution restrictions, a lack of new infrastructure
projects and delayed spending, analysts had noted.
    The adhesives and sealants maker, known for brands such as
Fevicol and Dr. Fixit, reported a 7.6% increase in revenue to
33.69 billion rupees, missing expectations of 33.99 billion
rupees.
    Revenue in the consumer and bazaar segment, which accounts
for about 80% of Pidilite's revenue, grew 5.2%, while the
business-to-business segment rose about 19%.
    “Despite subdued demand across urban and rural geographies,
we continued to make steady progress, with robust revenue and
underlying volume growth and healthy levels of profitability,"
the company's Managing Director Bharat Puri said in an earnings
release.
    Pidilite's earnings before interest, taxes, depreciation,
and amortization grew 8% from a year ago, while sales volumes
rose 9.7%.
    The company said it is cautiously optimistic on improved
demand conditions as a result of the good monsoon and increased
construction activities.


($1 = 86.3510 Indian rupees)

 (Reporting by Yagnoseni Das in Bengaluru; Editing by Varun H K)
 ((Yagnoseni.Das@thomsonreuters.com;))