India's Pidilite Industries parent of adhesive brand Fevicol, recorded 15% fall in quarterly profit, hit by higher input costs and weak demand. Rising Inflation has forced cash-strapped consumers in rural markets and smaller towns and cities to tighten budgets as they struggled to recover from the economic impact of Covid-19.
The consolidated net profit fell to Rs 3.04 billion rupees ($37.26 million) in the three months ended Dec. 31. The construction chemicals maker's consolidated revenue from operations rose 5.2% to 29.98 billion rupees, its slowest growth in nine quarters. Revenue in the year-ago quarter was inflated by price hikes, it added.
Pidilite, known for its synthetic resin adhesive Fevicol and waterproofing product Dr. Fixit, reported a 4.7% rise in cost of raw materials. Meanwhile, demand in rural and semi-urban areas remain under strain.
Revenue from consumer and bazaar segment, which sells adhesives, craft materials and construction and paint chemicals to retail users, grew 6.9%. This segment accounts for 80% of the company's revenue.
The international units reported moderate sales growth, while earnings before interest, taxes, depreciation, and amortisation remained under pressure due to higher input costs and the impact of currency depreciation, the company said.
