Highlights of the Concall by Capital Mkt
Net sales stood at Rs 1313.4 crore grew by 5.2% over the same quarter last year. Material cost, as a % to sale, is lower than same quarter last year by 778 bps mainly on account of lower prices of key raw materials. EBITDA stood at Rs.301.4 crore grew by 46.1%. Profit before tax in current quarter is Rs. 276.5 crore, a growth of 47.6% and Profit after tax stood at Rs 192.9 crore is higher by 40.5%.PBIT margins rose 690 bps to 24.6% in Q2FY’16 led by 660 bps rise in Consumer and Bazaar segment PBIT margins to 26.1% while Industrial product segment PBIT margin rose 600 bps to 17.5%.
Consumer and Bazaar segment revenue grew by 5.2% during Q2FY’16 compared to Q2FY’15 while segment profit before interest and tax (PBIT) grew by 38%. For H1FY’16 Segment revenue grew by 6.4% & segment profit beforeinterest and tax (PBIT) grew by 36.1%.
Industrial products segment revenue declined by 9.1% during Q2FY’16 compared to Q2FY’15 while segment PBIT for the quarter grew by 38.6%.For H1FY’16 Segment revenue declined by 4.3% & segment PBIT grew by 64.9% due to lower input costs.Sales in constant currency grew by 20% during the quarter. However, due to translation impact the reported sales show a growth of 10.9%.
North America sales recorded a growth of 6.9% for the quarter while EBITDA for the region improved by 57.9% on account of higher sales and improvement in margins due to various cost saving initiatives. For the Half year ended 30th September 2015 sales declined by 0.8% while EBITDA improved by 50.2%.
South America sales declined 1.9% for the quarter. Brazil business was impacted due to continued slowdown of the economy. Losses at EBITDA level reduced by 35.3%. Manufacturing and SG&A expenses were lower than last year due to the structural changes and other cost saving initiatives implemented. For the Half year ended 30th September 2015 sales declined by 4.3%.Loss at EBITDA level reduced by 24.7%.
Middle East & Africa sales grew by 117% for teh quarter largely due to commencement of distribution of Pidilite Industries products in the region, which hitherto was being done by a third party distributor. Adjusting for this revenue, sales were lower than last year. Loss at EBIDTA level increased by Rs 2.41 crore due to lower sales and higher SG&A expenses to support future sales growth in this region.
South & South East Asia sales grew by 26.2% for the quarter. EBIDTA grew by 36.3% due to good sales growth and reduction of material cost.The company expects tax rate of 30% for FY’16 which is further expected to increase in FY’17.VAM prices during the quarter were around USD 900-925 per tonne which corrected on QoQ basis. Currently prices are now below USD 900 per tonne
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