Pidilite reports 4% approx increase in Net sales as compared to last year - July to Sept quarter.

Pidilite Quarterly Numbers 

Net Sales at Rs 1,880.33 crore in September 2020 up 4.08% from Rs. 1,806.58 crore in September 2019.

Quarterly Net Profit at Rs. 356.42 crore in September 2020 up 9.93% from Rs. 324.22 crore in September 2019.

EBITDA stands at Rs. 534.33 crore in September 2020 up 26.02% from Rs. 424.02 crore in September 2019.

Pidilite Ind EPS has increased to Rs. 7.01 in September 2020 from Rs. 6.38 in September 2019.

Pidilite MD - Mr. Bharat Puri's statement 

Pidilite Industries Managing Director Bharat Puri said.

"This quarter saw steadily improving demand conditions each month. Consumer and Bazaar businesses grew volumes aided by strong growth in the rural and semi-urban areas. B2B businesses as well as the metros, while improving sequentially have still to reach pre-Covid levels," 

"Our profitability was aided by benign input costs as well as strong cost optimisation measures."

Pidilite acquires Araldite Brand

Pidilite Industries Ltd, owner of Fevicol brand, has signed a definitive agreement with Huntsman Group (USA) for acquiring a 100 per cent stake in one of its subsidiaries in India - Huntsman Advanced Materials Solutions Pvt Ltd (HAMSPL) — for ₹2,100 crore. 

HAMSPL manufactures and sells adhesives, sealants and other products under brands such as Araldite, Araldite Karpenter and Araseal in India.

Under the terms of the agreement, Huntsman will receive approximately 90 per cent of the cash consideration at closing and balance approximately 10 per cent under an earnout within 18 months if the business achieves sales revenue in-line with 2019. The transaction is expected to close by next week. 

Pidilite Stock - Past 1 year

Pidilite Stock - Past 5 years

Pidilite started its business in 1959. 

Since then it has been a pioneer in consumer and speciality chemicals in India. 

Currently it manufactures adhesives sealants, waterproofing solutions, construction chemicals, industrial resins and polymers.

For the industrial segment it manufactures Organic Pigments, Textile and Paper Chemicals, Industrial resins, Leather Chemicals, Industrial Adhesives, Footwear Adhesives and Industrial Bonding Solutions. 

It has 8 manufacturing facilities and its products are available in 71 countries all over the world. 

Its leading brands are 

1. Fevicol
2. Fevicol MR
3. Dr. Fixit 
4. Fevikwik
5. M-seal
6. Fevistik
7. Fevicryl

The 61-year old Pidilite’s brand Fevicol is ubiquitous for adhesives in India. A 70% market share in the segment is dominance worthy of envy. 

Apart from Fevicol, Dr Fixit, M-Seal are prominent brands in waterproofing, and the company is market leader in this segment as well.  

The two segments together make for more than half of the company’s ₹6,000 crore revenue. 

These products are widely used by carpenters, painters, plumbers, mechanics, households, students, offices etc. 

The fact that the COVID-19 crisis has forced potential home buyers to save the money and renovate homes instead, should be good news for the company.

(Disclaimer :This blog is for general information purposes and not to solicit business or provide any type of investment advise)