Pidilite Industries Expects Double-Digit Volume Growth in H2, Driven by Growth Brand Steps and Product Innovation

Pidilite Industries expects a ‘double digit underlying volume growth’ in the second half of the current fiscal, helped by its growth brand steps, along with product innovation and marketing initiatives, its Managing Director Sudhanshu Vats has said.

Driving Growth through Innovation and Marketing

The company, which manufactures adhesives, sealants and construction chemicals, had last week reported 9.8 per cent growth in its consolidated net sales to Rs 3,540 crore for the September quarter. Moreover, its Ebitda increased by 24 per cent.

The maker of Fevicol, M-Seal, Fevikwik, Dr Fixit, and Araldite had delivered double-digit underlying volume growth with sequential improvement and healthy operating margins, even in a challenging macro-economic environment.

Optimistic Outlook for H2

It remains optimistic and expects improvement, aided by favourable monsoons and the indirect cascading impact of GST 2.0 on demand, coupled with accelerated growth in the construction sector, driven by benign interest rates and enhanced liquidity.

‘In the first half, we have been on the higher side of the Ebitda corridor, which we’ve delivered, around 24 per cent, and I think if the input costs remain benign, we should deliver double-digit underlying volume growth profitably and perhaps within the corridor for sure, but maybe on more of the higher side of the corridor,’ Vats said.

Urban vs Rural Growth

When asked about urban versus rural growth, the MD expects the urban market, which has been stressed over the last few quarters, to start growing and look better.

‘We have seen rural growth rate higher than urban, but… in urban areas, we have seen a pick up in growth in quarter two. We should continue to see growth pick up in urban areas as well, but because of the work which we do, because of under penetration, we will continue to see strong growth in rural areas as well,’ he said.

Like other industry players, rural areas have witnessed significant growth for Pidilite. To know more about the Indian stock market trends, click here.

Impact of Geopolitical Situation on Demand and Commodity Prices

Replying to another query on the impact on demand and commodity prices amid the current geopolitical situation, Vats said the situation remains volatile, like for most businesses. However, Pidilite’s direct exposure to tariffs is lower, and allows us to manage business independently of the fluctuation and uncertainty.

‘…. but we keep a close watch on this and we keep looking at it, and particularly from a supply chain point of view, we have built more business contingency plans as we go forward. So, I think that ensures us a little bit as we go forward,’ Vats added.

For more information on how to invest in stock market, visit our website.

Conclusion

Pidilite Industries is poised to deliver double-digit volume growth in H2, driven by its growth brand steps, product innovation, and marketing initiatives. The company’s optimistic outlook is backed by favourable monsoons, the indirect cascading impact of GST 2.0 on demand, and accelerated growth in the construction sector.

To stay updated on the latest Nifty and Sensex news, follow our blog.