Pidilite Stock Rises on Strong Q1 Results

Adhesive manufacturer Pidilite Industries Ltd. reported June quarter results on Wednesday, August 6, which surpassed expectations, and were also higher on a year-on-year basis.

The company's net profit

increased by 18.7% from last year to ₹678 crore, which was higher than the CNBC-TV18 poll estimate of ₹617 crore.

Revenue for the quarter increased by 10.5% on a year-on-year basis to ₹3,753 crore, which was also marginally higher than the CNBC-TV18 poll estimate of ₹3,700 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter grew to ₹941 crore, a jump of 16% year-on-year, higher than the CNBC-TV18 poll estimate of ₹874 crore.

EBITDA margin for the quarter grew by

110 basis points from last year to 25%, and was also higher than the poll estimate of 23.6%.

In addition to the numbers, Pidilite's board has approved a bonus issue of one share for every one share held as on the record date, which is yet to be decided. It also approved a special dividend of ₹10 per share, and the record date for that has been fixed at August 13.

Shares of Pidilite Industries are trading 1.4% higher after the results announcements at ₹3,037.3.