Q2 2025 Pidilite Industries Ltd Earnings Call Transcript
Key Points
- Pidilite Industries Ltd (BOM:500331) reported a 7% increase in revenue for Q2 FY25 compared to the same period last year, with an underlying volume growth of 8%.
- The B2B segment showed strong performance with a UVG of 21%, driven by industrial and project verticals.
- Gross margins expanded by 280 basis points over the same period last year, aided by benign input prices.
- EBITDA margins for the standalone business improved to 24.6%, expanding by 143 basis points year-over-year.
- The company continues to invest in upgrading and building new facilities and expanding its distribution network, indicating a focus on long-term growth.
- Consumer and Bazaar product demand was impacted by rains at the beginning of the quarter, resulting in a lower UVG of 6%.
- Urban demand slowdown was noted, with concerns about the impact of food inflation and potential cooling off of real estate growth.
- The company's domestic subsidiaries, particularly Nina Percept, faced challenges and have not yet returned to profitability.
- Employee costs have surged, raising questions about the sustainability of such expenses in the long term.
- The competitive intensity in the waterproofing segment remains high, with no decrease in competition from paint companies.
Ladies and gentlemen, good day. And welcome to Pidilite Industries Q2 FY25 on 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. Thank you and over to you, sir.
Hi, good evening everyone. It is our pleasure to host the conference call for Pidilite 2Q FY25 results. I have on the line with me Mr. Bharat Puri, Managing Director; ; Mr. Sudhanshu Vats, Managing Director Designate; Mr. Kavinder Singh, Joint 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 who will take you through the results and then we will open up for Q&A over to you Sir.
Thank you. Thank you Percy, and good evening everyone. I'll keep my opening remarks, brief and short and I'll
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