Pidilite Industries (PIDILITIND) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated net sales grew 5.2% year-over-year to Rs. 3,223 Cr, with PAT up 17.8% to Rs. 540 Cr; standalone net sales rose 7.1% to Rs. 2,965 Cr, PAT up 19.2% to Rs. 542 Cr.

• H1 FY25 consolidated net sales increased 4.4% year-over-year to Rs. 6,607 Cr, PAT up 19.2% to Rs. 1,112 Cr; standalone net sales up 6.6% to Rs. 6,099 Cr, PAT up 18.6% to Rs. 1,094 Cr.

• Consumer & Bazaar (C&B) segment saw 6% UVG in Q2, with rural markets outpacing urban; B2B UVG was 21% driven by industrial and project verticals.

• International subsidiaries (excluding Pidilite USA and Pulvitec Brazil) delivered double-digit sales and EBITDA growth despite global uncertainties.

• Unaudited standalone and consolidated financial results for the quarter and six months ended 30 September 2024 were approved by the Board on 23 October 2024.

Financial highlights

• Gross margin expanded by 281 bps in Q2 and 376 bps in H1 year-over-year due to lower input costs.

• Standalone EBITDA margin for Q2 was 24.6%, up 143 bps year-over-year; H1 EBITDA margin was 24.6% vs. 23% last year.

• Q2 FY25 consolidated EBITDA grew 13.1% year-over-year to Rs. 769 Cr; standalone EBITDA up 13.7% to Rs. 731 Cr.

• Working capital remained healthy, supporting strong cash inflows.

• VAM consumption cost in Q2 was $980/ton, down from $1,000/ton last year.

Outlook and guidance

• Management aspires to deliver double-digit underlying volume growth, with H1 at 9%.

• Second half expected to benefit from improved macro factors: reduced weather disruptions, increased government capex, and good monsoon supporting rural incomes.

• No major price decreases expected; value growth may outpace volume.

• Margin expected to remain at the higher end of the 20-24% range, with increased A&P spend in H2.

• Continued investment in growth initiatives and supply chain modernization, while monitoring geopolitical risks.