Pidilite Industries (PIDILITIND) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue grew 9.3% year-over-year, driven by 9.7% underlying volume growth across categories and geographies.

• Consumer & Bazaar segment saw 7.3% volume growth, while B2B posted 21.7% growth in Q3.

• Gross margins improved by 100 basis points year-over-year due to lower input prices; EBITDA margin for Q3 was 24.3%, slightly lower than 25.1% last year due to increased A&SP spending.

• Domestic subsidiaries delivered double-digit revenue growth and improved EBITDA margins; international subsidiaries reported modest growth amid global uncertainties.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2024 were approved by the Board on 22 January 2025.

Financial highlights

• Standalone Q3 FY25 revenue was ₹3,099.08 crore, up from ₹2,834.47 crore in Q3 FY24; consolidated Q3 revenue was ₹3,368.91 crore, up from ₹3,129.99 crore.

• Standalone Q3 FY25 net profit was ₹534.50 crore, up from ₹522.85 crore; consolidated Q3 net profit was ₹552.42 crore, up from ₹534.56 crore.

• Nine-month standalone revenue was ₹9,221.84 crore, up from ₹8,578.09 crore; consolidated revenue was ₹9,999.17 crore, up from ₹9,481.14 crore.

• Gross margins for the nine-month period rose by 284 basis points year-over-year.

• Standalone basic EPS for Q3 FY25 was ₹10.51, up from ₹10.28 in Q3 FY24; consolidated basic EPS for Q3 FY25 was ₹10.86, up from ₹10.04.

Outlook and guidance

• Management expects input prices to remain benign in Q4, with margins likely to stay in the 20-24% range.

• Cautiously optimistic on improved demand due to good monsoon and increased construction activities.

• Demand strain persists in both urban and rural markets, but rural growth continues to outpace urban.

• No expectation of a significant post-budget demand pickup; improvement is tied to broader macroeconomic factors.

• Anticipates benefits from the construction boom as projects near completion, especially in A and B-class cities.