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Pidilite's valuation a sore spot
Mint Mumbai
|May 14, 2025
Pidilite Industries Ltd's Q4FY25 makes one thing clear: volume growth is resilient and the momentum is being sustained by demand.
Consolidated revenues grew 8.2% year-on-year (y-o-y) to ₹3,141 crore, backed by standalone underlying volume growth of 9.8% across categories and geographies. Volume growth is at a multi-quarter high.
Gross profit margin rose by 160 basis points (bps) to 55%, which is an 18-quarter high, according to data from Motilal Oswal Financial Services. Margin got support from benign input costs, especially vinyl acetate monomer (VAM), which averaged $880 a tonne in Q4, down from $925 a tonne last year. However, y-o-y Ebitda margin expansion was smaller at 26 bps to 20.1%. In fact, the metric fell 356 bps versus Q3 as Pidilite ramped up ad spends and a one-time staff cost adjustment.
For the full year, Ebitda margin has expanded 106 bps to 23% in FY25. Pidilite's operating margins are high, and it will be crucial to monitor whether the firm can sustain such high levels, reckon Motilal Oswal's analysts in a 9 May report.
This story is from the May 14, 2025 edition of Mint Mumbai.
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