Indian adhesive maker Pidilite's Q3 profit jumps on strong demand, lower costs

Pidilite Industries

23/01/2024 12:55

BENGALURU, Jan 23 (Reuters) - India's Pidilite
Industries  PIDI.NS  posted a nearly 68% jump in third-quarter
profit on Tuesday, the adhesive maker's biggest year-over-year
growth in nine quarters, driven by sustained demand and easing
costs.
    Consolidated net profit rose to 5.10 billion rupees ($61
million) in the October-December period from 3.04 billion rupees
a year earlier, the maker of Fevicol brand of adhesive said. 
    The rising construction and infrastructure activity in the
country drove demand for construction chemicals, which benefited
industrial adhesives and chemical manufacturers like Pidilite.
    The company's revenue increased 4% to 31.30 billion rupees
during the quarter. 
    Sales increased 5% in its consumer and bazaar business,
which accounts for nearly 81% of the total revenue. The segment
houses Fevicol and the company's waterproofing brand Dr. Fixit. 
    A drop in the average price of vinyl acetate monomer, a
crucial raw material for adhesives, helped pull down Pidilite's
total costs by 4%.
    The company's shares closed down 5.8% ahead of results. They
rose 11.3% in the third quarter. 
    
($1 = 83.1250 Indian rupees)

 (Reporting by Yagnoseni Das and Kashish Tandon in Bengaluru;
Editing by Eileen Soreng)
 ((Yagnoseni.Das@thomsonreuters.com; +91 6001289066;))