InvestorQ : How were the Jun-20 quarter results of Pidilite?
Katherine Gonsalves made post

How were the Jun-20 quarter results of Pidilite?

Rutuja Nigam answered.
12 months ago

Pidilite Jun-20 quarter result represented a sharp cut in profits but the stock had reacted positively as the results were better than the street expectations. Pidilite reported net profits of Rs.15.82 crore sharply down from Rs.294.39 crore in the Jun-19 quarter. Even the EBITDA was nearly 85% down at Rs.66.37 crore in the Jun-20 quarter. The EBITDA margins were also lower at 7.56%. However, the street was expecting a net loss.

Total revenues were down 56.5% at Rs.877.84 crore for the Jun-20 quarter. Both in the case of profits and sales, the company had guided for much lower numbers and hence it came as a positive surprise to analysts. The principal C&B business of the company reported revenues of Rs.700 crore represent a fall of 55% on a YOY basis.

Pidilite reported virtually zero sales in April due to the lockdown while the numbers did start picking up in May and June. However, the company was helped along with way by softer input costs as well as a slew of cost control measures announced by the company. However, the near term demand outlook remains muted due to the lag effect of the pandemic.