How did you see the second quarter results of Oil India and Pidilite announced on Thursday 11-November?

Let me start with the results of Oil India first. The company reported 32.74% growth in sales for Sep-21 quarter at Rs.7,254 crore. Oil and gas revenues of Oil India gained from benefited from its net realization per barrel of oil exceeding $69/bbl. Oil India was a gainer from the increased demand from refineries with prices reflecting the global Brent trend.

In terms of bottom line, the net profits for the Sep-21 quarter was 29.2% higher at Rs.1,152 crore. This is despite the fact that the inputs and consumables saw a sharp spike due to global supply chain constraints. That was the reason, the profits grew slower than the revenues. Net profit margin for Sep-21 quarter stood at 15.88% against 16.32% in Sep-20.

Let me now turn to Pidilite Industries, the manufacturers of Fevicol. It reported 39.7% growth in sales for the Sep-21 quarter at Rs.2,626 crore. Pidilite saw robust growth of 39.4% at Rs.2,130 crore on the B2C side of the business while there was a healthy 41.1% growth to Rs.533 crore in the B2B side of the business. Pidilite declared dividend of Rs8.50 per share.

Net profits for Sep-21 quarter input cost pressures as profit grew by just 5.11% to Rs.375 crore. Raw material costs for the manufacture of adhesives saw a sharp spike of 73% yoy in line with supply chain constraints offsetting growth in top line. Net profit margin for Sep-21 quarter stood at 14.27%, lower than 18.96% in the Sep-20 quarter year ago quarter.