Mumbai-based specialty chemicals company, Pidilite Industries, is gearing up to announce its financial results for the October-December period (Q3FY24) on Tuesday, 23 January. Analysts anticipate a robust operational performance from Pidilite Industries, renowned for brands like Fevicol, Dr Fixit and M-Seal, driven by strong domestic demand during the festive season and growth in the real estate sector.
According to research from a media house, Pidilite Industries is projected to reveal a 71 per cent year-on-year increase in consolidated profit after tax (PAT) to Rs 527 crore for the quarter ending December 2023. Quarterly revenue is estimated to be Rs 3,249 crore for the fiscal third quarter, compared to Rs 2,998 crore in the corresponding period the previous year.
A media house analysts predict Pidilite’s earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter to reach Rs 771 crore, reflecting a 55 per cent increase from the previous year. The analysts anticipate an improvement in Pidilite’s margin, a key profitability metric, to 24 per cent from 17 per cent a year ago, driven by a decline in vinyl acetate monomer (VAM) costs. VAM is a crucial intermediary in the production of polymers and resins used in adhesives, coatings, paints, films, textiles and other end-products.
The upcoming quarterly report from Pidilite will be closely monitored by analysts for insights into domestic and international demand trends, as well as the company’s margin outlook.
In the previous quarter (Q2), Pidilite Industries reported a 35.8 per cent increase in consolidated net profit to Rs 458.5 crore, ending on 30 September 2023, supported by volume growth and stable input prices. Revenue from operations increased by 2.2 per cent to Rs 3,076 crore, while total expenses decreased by 3.9 per cent to Rs 2,484.7 crore, as per regulatory filings.
