Pidilite Industries posted a 9.7% rise in consolidated net profit to Rs 356.44 crore in Q2 September 2020 from Rs 325 crore in Q2 September 2019. Consolidated net sales stood at Rs 1,880 crore, rising 4% from Rs 1,806 crore in Q2 September 2019. Profit before tax (PBT) stood at Rs 478 crore, an increase of 35% over Rs 354 crore in the same period last year.
Pidilite said the consumer and bazaar segment returned to growth reaching pre-COVID levels in most geographies. Growth was healthy in construction chemicals and DIY products. The Fevicol maker further said that B2B segment continued to face headwinds, however it showed signs of recovery in the latter part of the quarter. International subsidiaries have reported healthy double-digit constant currency growth and domestic subsidiaries continued to witness challenging business conditions. However, performance has continued to improve sequentially during the quarter, the company added.
Commenting on the quarter performance, Bharat Puri, MD of Pidilite Industries 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. While we are seeing signs of input costs hardening, we remain cautiously optimistic on steadily improving demand recovery. Our focus would be to continually drive volume growth via investment in our brands, in sales and distribution and in consumer relevant innovation.”