BENGALURU (Reuters) – India’s Pidilite Industries Ltd, maker of adhesive brand Fevicol, on Monday reported a rise in fourth-quarter profit, helped by easing raw material costs and strong demand.
The company’s consolidated net profit rose 11.3% to 2.83 billion rupees ($34.6 million) for the quarter ended March 31, it said in an exchange filing.
Consolidated revenue from operations rose 7.3% to 26.89 billion rupees, primarily driven by improvement in rural and semi-urban demand during the quarter, Pidilite added.
The company, also known for its waterproofing product Dr. Fixit, said its raw material costs dropped 8.3% to 12.97 billion rupees in the quarter, which helped improve its gross margins.
The consumer and bazaar segment, which sells adhesives, craft materials and construction and paint chemicals to retail users and accounts for nearly 80% of Pidilite’s revenue, posted a revenue growth of 10.45%.
“The moderation in input costs, easing of inflation and the growth in infrastructure and construction should enable us to deliver volume lead profitable growth,” said Managing Director Bharat Puri.
However, the near-term environment is likely to remain uncertain, Puri added.
Pidilite’s shares closed 0.9% lower ahead of the results. The company recommended a dividend of 11 rupees per share for the fiscal year 2023.
($1 = 81.7850 Indian rupees)
(Reporting by Anuran Sadhu and Hritam Mukherjee in Bengaluru; Editing by Varun H K)