Mumbai-based adhesive maker, Pidilite Industries, reported a net profit of Rs 283 crore in the fourth quarter ended March 2021, an increase of 11% compared to the same period last year. The company’s revenue from operations rose by 24% to Rs 2,254 crore, driven by strong sales in its consumer and bazaar segment.
Pidilite Industries attributed its strong performance to its effective cost management strategies and digital initiatives to increase brand visibility. During the quarter, the company also launched new products such as the Dr. Fixit waterproofing range and the Fevikwik Gel adhesive, which received a positive response from consumers.
The company’s gross margin improved to 49.6% in Q4 FY21 from 47.9% in the corresponding period of the previous year. However, its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin remained flat at 23.4%.
Pidilite Industries Chairman, Madhukar Parekh, said that the company’s performance in the last fiscal year was driven by its focus on consumer needs, market expansion, and product innovation. He added that the company is confident of continuing this growth momentum in the coming year, driven by its strong brand equity and distribution network.
Pidilite Industries is the market leader in adhesives, sealants, and construction chemicals in India, with popular brands such as Fevicol, Fevikwik, and M-Seal. It also has a significant presence in international markets, including the US, Europe, and the Asia-Pacific region.
The company’s stock price rose by 1.5% on the day of the announcement, closing at Rs 2,171.65 on the National Stock Exchange. Pidilite Industries’ market capitalization currently stands at over Rs 1.2 lakh crore.
The company’s strong financial performance has boosted investor confidence and signals a positive outlook for the adhesives industry in India.
