Q1 2025 Pidilite Industries Ltd Earnings Call Transcript
Key Points
- Pidilite Industries Ltd (BOM:500331) reported underlying volume growth of 9.6% for Q1 FY25, with Consumer and Bazaar businesses growing by 8% and B2B businesses by 18%.
- Gross margins expanded year-on-year by 465 basis points due to moderation in input prices.
- EBITDA margins for the stand-alone entity improved to 24.6%, higher by 187 basis points compared to Q1 last year.
- The company continues to invest in brand building, upgrading manufacturing facilities, and expanding its distribution network.
- International subsidiaries, excluding Pidilite USA and Pulvitec, saw revenue growth of 9% and an EBITDA margin improvement of 190 basis points.
- The Kerala market experienced a significant slowdown in demand, which could potentially spread to other markets.
- Domestic subsidiary revenues remained flat, indicating potential challenges in the local market.
- The company has not taken any significant pricing rollbacks in Q1, which could impact future pricing strategies.
- The working capital situation, although healthy, was lower than March '24, which might affect liquidity.
- The B2B business, despite strong growth, may not sustain the 18% growth rate consistently.
Ladies and gentlemen, good day, and welcome to Pidilite Industries Limited Q1 FY25 results conference call hosted by IIFL Securities Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Percy Panthaki from IIFL Securities. Please go ahead.
Hi, everyone. Good evening. It's our pleasure and privilege to host the results call for Pidilite Limited. From the company, we have with us Mr. Bharat Puri, Managing Director; Mr. Sudhanshu Vats, Managing Director Designate; Mr. Sandeep Batra, Executive Director of Finance and CFO; and Mr. Dharmendra Lodha, Senior Vice President, Finance.
I'll hand over the call to the management for their initial comments, and then we'll open up for Q&A. Over to you, sir.
Thank you. Thank you, Percy, and good afternoon to everybody on the call. I'll keep my opening remarks brief
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