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Pidilite Industries Ltd, the market leader in adhesive and specialty chemicals, has declared a strong final dividend of ₹20 per share for FY25, reiterating its commitment to shareholder return even as its March quarter profitability fell short of market expectations.
Highlights:
Dividend Hike:
The Board has approved a final dividend of ₹20 per share for FY25, higher than last year's ₹16 payout, rewarding consistent shareholders on the back of steady operational performance.
Q4 Revenue Performance
Consolidated operating revenue for the quarter ending March came in at ₹31.41 billion, just short of the IBES estimate of ₹31.64 billion. Even with the marginal miss, sales were robust, thanks to good demand in adhesives and construction chemicals.
Profit Below Expectations
Net profit for Q4 came in at ₹4.22 billion, missing the IBES estimate of ₹4.41 billion. The miss is due to increased input costs and higher expenses, which pressured margins despite stable topline growth.
Operational Strength
Pidilite retains a robust market position, with its lead brands such as Fevicol and Dr. Fixit propelling growth. The company's continued investments in innovation and distribution growth have assisted in balancing challenges from muted export demand and increasing costs.
Market Outlook:
At a share price close to ₹3,011, Pidilite's consistent dividend and resilient sales highlight its defensive attractiveness in the FMCG and chemicals segment, even as sector-wide growth eases.
Pidilite's recent results reflect its success in generating shareholder value while traversing a difficult cost scenario.
Source: Moneycontrol, INDmoney, Financial Express
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