India's Pidilite misses quarterly profit estimates on higher costs, tepid demand
Prices of Vinyl Acetate Monomer (VAM), a key raw material for Pidilite, inched up 5% during the quarter, contributing to a 15.9% rise in overall raw material costs.
The company's total expenses rose 6.9% during the quarter, which is typically its weakest.
Moreover, soaring summer temperatures hindered construction activity, reducing demand for Pidilite's adhesives, sealants and related products.
Pidilite, known for brands such as adhesive Fevicol and sealant Dr. Fixit, reported an 8.3% increase in fourth-quarter revenue to 31.41 billion Indian rupees ($367.99 million), but this was below analysts' estimate of 31.64 billion rupees, according to data compiled by LSEG.
The company's consolidated net profit rose 40.5% to 4.22 billion rupees for the three months ended March. 31. Analysts, on average, expected 4.41 billion rupees.
Revenue in the consumer and bazaar segment, which accounts for about 80% of Pidilite's revenue, grew 6.7%.
Pidilite's board of directors has recommended a dividend of 20 rupees per equity share for the financial year ending March 31, 2025.
Shares of the company closed 0.6% lower ahead of the results.
($1 = 85.3560 Indian rupees)
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