PIDILITE INDUSTRIES Announces Quarterly Results (1QFY21); Net Profit Down 94.8%

Tue, 18 Aug

PIDILITE INDUSTRIES has announced its results for the quarter ended June 2020. Here is a detailed performance review of the same:

PIDILITE INDUSTRIES Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-19*	3 Mar-20*	3 Jun-20*	QoQ Change	YoY Change
Net Sales	Rs m	20,168	15,447	8,778	-43.2%	-56.5%
Other income	Rs m	399	140	200	43.3%	-49.8%
Turnover	Rs m	20,567	15,586	8,978	-42.4%	-56.3%
Expenses	Rs m	15,731	12,438	8,115	-34.8%	-48.4%
Gross profit	Rs m	4,437	2,679	664	-75.2%	-85.0%
Depreciation	Rs m	377	501	461	-8.0%	22.2%
Interest	Rs m	73	98	91	-7.4%	23.6%
Profit before tax	Rs m	4,385	2,220	312	-85.9%	-92.9%
Tax	Rs m	1,444	656	159	-75.8%	-89.0%
Profit after tax	Rs m	2,941	1,564	154	-90.2%	-94.8%
Gross profit margin	%	22.0	17.3	7.6
Effective tax rate	%	32.9	29.5	50.8
Net profit margin	%	14.3	10.0	1.7

Year-on-Year Performance:

• The company's operating income during the quarter fell 56.5% on a year-on-year (YoY) basis. The expenses were down by 48.4% YoY during the same period.
• The company's operating profit declined by 85.0% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 7.6% in 1QFY21 as against 22.0% in 1QFY20.
• Depreciation charges increased by 22.2% and finance costs increased by 23.6% YoY, respectively.
• Other income declined by 49.8% YoY during the quarter.
• Net profit for the quarter declined by 94.8% YoY. Net profit margins during the quarter declined from 14.3% in 1QFY20 to 1.7% in 1QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 43.2% on a quarter-on-quarter (QoQ) basis. The expenses were down by 34.8% QoQ during the same period.
• The company's operating profit declined by 75.2% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 7.6% in 1QFY21 as against 17.3% in 4QFY20.
• Net profit for the quarter declined by 90.2% QoQ, while net profit margins declined from 10.0% in 4QFY20 to 1.7% in 1QFY21.

To see how PIDILITE INDUSTRIES has performed over the last eight quarters,please visit here.

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PIDILITE INDUSTRIES Share Price Performance

Over the last one year,PIDILITE INDUSTRIES share price has moved up from Rs 1,369.6 to Rs 1,428.0, registering a Gain of Rs 58.5 or around 4.3%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 11,744.5 (up 0.3%). Over the last one year it has moved up from 10,980.9 to 11,744.5, a gain of 764 points (up 7.0%).

Overall, the S&P BSE SENSEX is up 2.3% over the year.

Current Valuations

At the current price of Rs 1,428.0, the price to earnings (P/E) ratio of PIDILITE INDUSTRIES stands at 87.1 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 17.6 times.