Net sales stood at Rs 2,507.10 crore for the quarter ended 31 March 2022 as against Rs 2,235.52 crore during the same period in the previous year, registering a growth of 12.1%.
Profit before tax stood at Rs 345.87 crore in the fourth quarter, down by 15.9% from Rs 411.19 crore in the same period last year. The company reported a 18.4% jump in total expenditure to Rs 2,106.02 crore in Q4 FY22 over Q4 FY21.
EBITDA for the quarter ended stood at Rs 412 crore, which is lower by 11% over the same quarter last year.
Pidilite said that the current year registered robust sales growth aided by strong volume growth across categories and geographies. Growth was broad based across Consumer and Bazaar ('C&B') and Business to Business ('B2B') segments with both the segments reporting volume growths of over twenty percent each. This was strongly enabled by the focus on digital initiatives, innovation and building a resilient and agile supply chain.
The current quarter witnessed price led growth with volumes remaining subdued on account of the pandemic and persistent inflation impacting consumer demand. The margins remained impacted adversely by unprecedented inflation in key raw materials as a result of volatility and increased input costs. This was partially mitigated by calibrated pricing actions. In this difficult macro environment, we continued to make adequate investment in our brands, the company stated.
The company further said that domestic subsidiaries in C&B reported good sales growth. Performance of domestic subsidiaries in B2B are showing signs of revival on account of recovery in real estate and construction related activities. International subsidiaries registered moderate sales growth amidst high inflation and currency devaluation.
Commenting on the year end and quarter performance, Bharat Puri, managing director (MD) of Pidilite Industries, said, “This quarter registered price led growth with volumes being subdued on account of a significantly enhanced base (45% growth in same quarter last year) along with the pandemic closures in January. Input prices were the highest in this quarter over the last few years. While there are near term concerns around significant inflation and the impact of this on market growth, we are confident of the medium to long-term prospects of the home improvement sector and remain focused on delivering consistent and profitable volume led growth.”
On full year basis, the company reported a 6.5% rise in net profit to Rs 1,207.56 crore on a 36% increase in net sales to Rs 9,920.96 crore in FY22 over FY21.
Meanwhile, the board of directors of the company recommended final dividend of Rs 10 per equity share, for the financial year ended 31 March 2022.
Pidilite Industries is a manufacturer of adhesives and sealants, construction chemicals, craftsmen products, DIY (Do-It-Yourself) products and polymer emulsions in India.
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