Pidilite Industries - Q3FY21 First Cut - ICICI Direct

(CMP: Rs. 1716 MCap: Rs. 87219 crore)

Pidilite reported a strong Q3FY21 performance led by a notable expansion in EBITDA margin and better than expected growth in bottom-line.

Q3FY21 Earnings Summary

- Pidilite's consolidated revenue came in at Rs. 2299 crore up by 19% YoY (Vs I-direct estimate of ~Rs. 2105 crore). On a like to like basis (i.e. excluding revenue from Huntsman Advanced Materials Solutions Pvt Ltd) the consolidated revenue growth was at 16% YoY

- Standalone revenue increased by 18% YoY to Rs. 1957 crore, led by ~19% of volume growth. On the segment front, Consumer and Bazaar segment (C&B) segment revenue increased by ~20% to Rs. 1597 crore led by 22% growth in volumes. Further, B2B segment also witnessed recovery with revenue growth of 10% YoY to Rs. 379 crore led by 12% volume growth

- The gross margin during the period surged up by 100 bps YoY led by benign raw material prices. Other than this, savings in employee cost and other cost (down by 90 bps and 190 bps YoY respectively), helped significant expansion in EBITDA margin by 400 bps YoY to 28% (I-direct estimate: ~25%)

- PAT came in at Rs. 446 crore up by 29% YoY, better than our estimate of ~Rs. 386 crore. This was largely outcome of better than expected sales growth and expansion in EBITDA margin

The quarter performance was better than our estimates led by a strong EBITDA margin during Q3FY21. Consumer and Bazaar and B2B businesses reported strong volume growth aided by demand pick-up in urban centres and improvement in industrial activities. We await management commentary on demand recovery in the coming period. We will come out with detailed report post Q3FY21 concall.

Shares of PIDILITE INDUSTRIES LTD. was last trading in BSE at Rs.1716.4 as compared to the previous close of Rs. 1710.35. The total number of shares traded during the day was 50206 in over 2684 trades.

The stock hit an intraday high of Rs. 1726.7 and intraday low of 1700. The net turnover during the day was Rs. 85983715.

Source : Equity Bulls

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