Pidilite Industries Q2 2024 Results

Q: What was Pidilite Industries' revenue growth for Q2 2024?

The revenue increased by 5.16% YoY for Q2 2024.

Pidilite Industries Q2 2024 Results: Strong Year-on-Year Growth Amid Short-Term Challenges

Pidilite Industries has reported its Q2 results on October 23, 2024, highlighting a robust year-on-year (YoY) profit increase of 18.75%. The company’s topline revenue experienced a 5.16% growth compared to the same quarter last year, signaling solid operational performance in a challenging market environment.

Year-on-Year vs. Quarter-on-Quarter Analysis

While the year-on-year figures are promising, a closer look at the quarter-on-quarter (QoQ) data reveals some challenges. Pidilite’s revenue has decreased by 4.73% when compared to the previous quarter, with profits also declining by 5.71%. This short-term dip suggests that the company faces difficulties in maintaining its momentum despite the overall positive annual growth trajectory.

Factors Affecting Profitability

One of the critical factors impacting profitability is the rise in Selling, General & Administrative (SG&A) expenses, which have surged by 4.42% QoQ and a substantial 19.96% YoY. This significant increase may have contributed to the sequential decline in profitability, as higher operational costs can eat into net margins.

Operating Income Insights

Despite a 6.51% decrease in operating income QoQ, Pidilite has managed to achieve a 12.64% increase YoY. This demonstrates the company’s resilience and its capability to enhance operational efficiency over the long term.

Earnings Per Share (EPS) Growth

Earnings per share for the second quarter reached ₹10.49, marking an 18.53% increase from the same period last year. This growth in EPS is a positive indicator for shareholders, reflecting improved profitability on a per-share basis.

Stock Performance and Market Capitalization

Over the past week, Pidilite Industries has delivered a -2.81% return. However, over the last six months, the stock has performed well with a 4.76% return and an impressive 13.83% year-to-date. Currently, the market capitalization stands at ₹157,197.2 crore, with a 52-week high of ₹3,415 and a low of ₹2,292.55. This trading range illustrates healthy investor interest in the stock.

Analyst Consensus and Recommendations

Among the 13 analysts monitoring Pidilite Industries, the consensus remains mixed. The ratings include:

1 Strong Sell
4 Sell
3 Hold
5 Buy

As of October 24, 2024, the overall recommendation is to Hold, reflecting cautious optimism amidst the recent performance metrics.

Pidilite Industries Financials Breakdown

Period	Q2 2024 (₹ crore)	Q1 2024 (₹ crore)	Q-o-Q Growth	Q2 2023 (₹ crore)	Y-o-Y Growth
Total Revenue	3,234.91	3,395.35	-4.73%	3,076.04	+5.16%
Selling/General/Admin Expenses Total	435.62	417.20	+4.42%	363.15	+19.96%
Depreciation/Amortization	87.88	84.42	+4.1%	75.21	+16.85%
Total Operating Expense	2,553.98	2,667.03	-4.24%	2,471.54	+3.34%
Operating Income	680.93	728.32	-6.51%	604.50	+12.64%
Net Income Before Taxes	725.10	769.63	-5.79%	621.61	+16.65%
Net Income	534.56	566.92	-5.71%	450.15	+18.75%
Diluted Normalized EPS	10.49	11.14	-5.83%	8.85	+18.53%

Conclusion

In summary, Pidilite Industries has delivered impressive year-on-year growth in both revenue and profit for Q2 2024, demonstrating its resilience in a competitive landscape. However, the company must navigate short-term challenges, including rising operational costs and declining sequential performance. Stakeholders should closely monitor the company’s strategies to sustain growth momentum and enhance shareholder value in the upcoming quarters.