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Pidilite Industries Q1FY22 Conference Call Highlights

Pidilite Industries Q1FY22 Conference Call Highlights

Published on 16 August 2021 .Views 168 .Comments 0
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  • Revenue from operations stood at 1937 crores displaying an upward momentum of 121% YOY from 878 crores & a downtrend of 13% QOQ. YOY growth no is higher due to lower base. Volume & Product Mix also contributed to growth
  • EBITDA stood at 354 crores with an upward juncture of 312% from 86 crores YOY & a degrowth of 26% Sequentially
  • EBITDA margin stood at 18%, displaying a growth of 8% YOY & a degrowth of 3% QOQ. Sequential Margins suffered due to better inventory management in Q4
  • PAT showed a growth of 715% YOY from 27 crores & stood at 220 crores, displaying a degrowth of 28% QOQ.
  • PAT margin also stood at 11% with a growth of 8% YOY & a degrowth of 3% sequentially. Finance Cost was higher sequentially as well taking a toll of margins.

Business Highlights

Segment Performance:

Consumer & Bazaar

  • This segment contributed 75% to revenue, with sales of around 1486 crores a growth of 112% YOY & degrowth of around 14 QOQ
  • Contribution to EBIT stood at 370 crores, which is 89% of total EBIT

Business to Business

  • This segment contributed 24.5% to revenue, with sales of around 482 crores a growth of 156% YOY & degrowth of around 10 QOQ
  • Contribution to EBIT stood at 42 crores, which is 10% of total EBIT


  • Overseas subsidiaries continued its positive momentum and reported high double-digit constant currency revenue growth as well as strong earnings growth.
  • Domestic subsidiaries suffered as a consequence of the lockdown in May, we have seen a sustained recovery in demand from June onwards.

Indian Subsidiaries:

  • Nina Percept Pvt Ltd: Revenue:57.5 Crores , EBITDA:-7.5 Crores
  • ICA Pidilite Pvt Ltd: Revenue:40 Crores, EBITDA:4.8 Crores
  • Cipy Polyurethane Pvt Ltd: Revenue:25 Crores , EBITDA:2.3 Crores
  • PAPL: Revenue:72 Crores , EBITDA:22.3 Crores
  • Others: Revenue:7.2 Crores , EBITDA:-0.2 Crores

Subsidiaries Around the World Consolidated

  • America: Revenue:51.5 Crores, EBITDA:5.3 Crores
  • Middle East & Africa: Revenue:48 Crores , EBITDA:-0.6 Crores
  • Asia: Revenue:68 Crores , EBITDA:13 Crores

Demand outlook:

  • Sales in southern markets remain impacted due to lockdown in Q1. However, there was an uptick in demand from June 2021 across the regions post ease in lockdown restrictions
  • Tier II, Tier III cities are doing well with sales growth in semi urban near pre Covid levels. Focus will be on driving volumes and increasing profitability
  • Management estimates revival in real estate will be a big positive for the company
  • The company’s market share remains at 65-70% in the epoxy adhesive category followed by 20-25% of Astral

Margin outlook:

  • The price hike of ~4-6% covered ~70% of raw material inflation.
  • Spot price of VAM(Vinyl Acetate Monomer) is hovering at US$1400-1500/tonne from average consumption cost of US$1610 in Q1FY22 (vs. US$1200 in Q4FY21, US$890 in Q1FY21). The management expects VAM prices to peak out from H2FY22 and come down to their normal level of US$800-900 /tonne
  • The management reiterated margin guidance of 22-24%. Pidilite will command a brand premium of 15-20% over other brands

Capex outlook:

  • The management has indicated capex of 4-6% of total revenue Capex will be focused towards improving supply chain and building a robust distribution network


  • Final dividend of Rs. 8.5 Per share approved by shareholders at the AGM held on 11 August 21
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