Indian adhesive maker Pidilite Industries' Q4 profit rises on lower costs

Pidilite Industries

07/05/2024 15:36

BENGALURU, May 7 (Reuters) - India's Pidilite Industries
 PIDI.NS , which makes Fevicol adhesives and Dr. Fixit
waterproofing products, posted a 6.2% jump in fourth-quarter
profit on Tuesday, driven by lower input costs.
    A healthy real estate sector and rising infrastructure
creation are driving demand for construction chemical makers
like Pidilite. 
    The company's consolidated net profit rose to 3.01 billion
rupees ($36.07 million) in the quarter ending March 31, which is
traditionally its weakest quarter, from 2.83 billion rupees a
year earlier.
    Its revenue increased 7.9% to 29.02 billion rupees, marking
the sixth consecutive quarter of single-digit percentage growth.
    Prices of vinyl acetate monomer, a key raw material for
adhesives, have fallen steeply since last year, helping bring
down the company's cost of materials consumed by 6.8% in the
fourth quarter.
    Sales rose 6.4% in its consumer and bazaar business segment,
which houses the Fevicol and Dr. Fixit brands, and accounts for
over 75% of the total revenue.
    "While there may be short term softness in the environment
in near term, we continue to remain optimistic about market
demand in the medium term, with overall increase in construction
activities, government spending," Pidilite Industries Managing
Director Bharat Puri said in a statement.
    The company's shares closed down 0.1% ahead of results.


($1 = 83.4593 Indian rupees)

 (Reporting by Yagnoseni Das, Meenakshi Maidas in Bengaluru;
Editing by Mrigank Dhaniwala)
 ((Yagnoseni.Das@thomsonreuters.com;))