Shares of Pidilite Industries sank to their lowest since May after the adhesives manufacturing firm posted its first-quarter results, which seemed to disappoint investors.
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What Happened: The company’s net profit after tax rose 32% to ₹474 crore from the previous year, which was ahead of market expectations of around ₹465 crore, according to a CNBC-TV18 poll.
Gross Margins surged 812 basis points versus expectations of 650 basis points, as per estimates.
However, the company’s revenue edged up only 6% to ₹3,264 crore, which was below street estimates of ₹3,410 crore.
At the same time, some of the company’s segments faced headwinds from slow demand.
“B2B, exports and international business continued to face sluggish demandconditions,” said Bharat Puri, managing director of Pidilite. He also added that future growth will largely be volume led.
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Price Action: Pidilite’s share price tumbled 2.75% to ₹2,531.95 in late afternoon trade on Thursday.
