Pidilite Industries , India's leading manufacturer of adhesives, sealants, and construction chemicals, reported a robust financial performance for the first quarter, surpassing market expectations.

Strong Profit and Volume Growth

The company's consolidated net profit for Q1 rose to ₹678.00 crore, marking an 18.70% increase from the same quarter last year. This performance exceeded analyst estimates, which had projected a profit of ₹617.00 crore according to a CNBC-TV18 poll.

Pidilite Industries achieved a 10.50% revenue growth, slightly above the estimated ₹3,700.00 crore, with total revenue reaching ₹3,753.00 crore.

Operational Highlights

• EBITDA grew 16% to ₹941.00 crore, surpassing the estimated ₹874.00 crore.
• EBITDA margin expanded 110 basis points to 25%, above the estimated 23.60%.
• The company achieved an underlying volume growth of 10% across categories and geographies, exceeding expectations of 8-10%.

Special Announcements

The board of Pidilite Industries approved two significant measures:

1. A bonus issue in the ratio of 1:1 (subject to shareholder approval). The record date for this will be determined later.
2. A special interim dividend of ₹10.00 per share, with August 13 set as the record date.

Market Response

Following the announcement of these strong results and shareholder-friendly measures, Pidilite Industries' shares traded 1.40% higher at ₹3,037.30.

Future Outlook

Pidilite Industries' strong Q1 performance, coupled with strategic initiatives like the bonus issue and special dividend, positions the company favorably in the adhesives and construction chemicals market. The company continues to demonstrate resilience and growth potential in a challenging macro-economic environment.

Pidilite Industries , the renowned adhesive manufacturer, has reported strong financial results for the quarter and announced significant shareholder rewards.

Financial Performance

Pidilite Industries reported consolidated net sales of ₹3,742.00 crore for the quarter, representing a 10.6% increase year-over-year. The company's consolidated profit after tax grew by 18.7% to ₹678.00 crore, while EBITDA increased by 15.8% to ₹941.00 crore. EBITDA margins improved by 101 basis points.

The company achieved underlying volume growth of 9.9%, driven by its Consumer & Bazaar division (9.3% volume growth) and B2B segment (12.6% growth). Domestic subsidiaries posted 11.5% sales growth with EBITDA rising 31.7%, while international subsidiaries grew 6.4% with EBITDA up 9%.

Bonus Share Issue and Special Dividend

In a significant move, Pidilite Industries' board has approved a bonus issue in the ratio of 1:1, meaning shareholders will receive one additional share for each share they currently hold. This marks the company's first bonus issue since March 2010.

Additionally, to commemorate the 101st birth anniversary of founder Shri BK Parekh, the company announced a special interim dividend of ₹10.00 per share.

Management Commentary

Managing Director Sudhanshu Vats noted strong volume growth despite challenging macroeconomic conditions and expressed cautious optimism about domestic market improvements.

Stock Performance

Following the announcements, Pidilite Industries' shares were trading at ₹3,036.50, up 1.30% on the National Stock Exchange (NSE).

Looking Ahead

The bonus issue proposal requires shareholder approval. Investors will likely be closely monitoring how these developments influence the company's stock in the coming days, as well as any further improvements in the domestic market as suggested by the management.

Pidilite Industries continues to demonstrate its commitment to shareholder value through consistent financial performance and rewarding policies, even in the face of challenging economic conditions.