Pidilite Industries - Q2FY21 First Cut - ICICI Direct

(CMP: Rs. 1563; MCap: Rs. 79403 crore)

Pidilite reported a strong Q2FY21 performance led by a notable expansion in EBITDA margin and better-than-expected growth in bottomline.

Q2FY21 Earnings Summary

- Pidilite's consolidated revenue came in at Rs. 1880 crore up by 4% YoY (in line with our estimate of Rs. 1924 crore) supported by same amount of volume growth in Q2FY21

- Standalone revenue increased by 4% YoY to Rs. 1630 crore. On the segment front, Consumer and Bazaar segment (C&B) segment revenue increased by ~7% to Rs. 1335 crore led by similar growth in volumes. Further, B2B segment recovery was slightly delayed thereby revenue touching 91% of its pre-Covid level in Q2FY20

- Revenue from subsidiaries increased by 6% YoY led by strong performance in the overseas subsidiaries

- The gross margin during the period surged up by ~256 bps YoY led by benign raw material prices. Additionally, significant saving in other cost (down by 400 bps YoY) during the period, help a significant expansion in EBITDA margin by 688 bps YoY to 27% (I-direct estimate: 22%)

- The PBT increased by 35% YoY to Rs. 477 crore led by expansion in EBITDA margin. Despite tax reversal benefits in the base period, PAT for the quarter increased by 9.7% YoY to ~Rs. 356 crore (I-direct estimate: Rs. 305 crore)

The quarter performance was better than our estimates led by a strong EBITDA margin during Q2FY21. Consumer and Bazaar businesses volume growth was aided by strong pick-up in the rural and semi urban demand. B2B businesses as well as the metros, while improving sequentially have still to reach pre-Covid levels. We await management commentary on demand recovery in the coming period. We will come out with detailed report post Q2FY21 concall.

Shares of PIDILITE INDUSTRIES LTD. was last trading in BSE at Rs.1562.65 as compared to the previous close of Rs. 1566.4. The total number of shares traded during the day was 46240 in over 3135 trades.

The stock hit an intraday high of Rs. 1585 and intraday low of 1548.3. The net turnover during the day was Rs. 72258294.

Source : Equity Bulls

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