Indian adhesive maker Pidilite’s Q3 profit jumps on strong demand, lower costs

BENGALURU (Reuters) – India’s Pidilite Industries posted a nearly 68% jump in third-quarter profit on Tuesday, the adhesive maker’s biggest year-over-year growth in nine quarters, driven by sustained demand and easing costs.

Consolidated net profit rose to 5.10 billion rupees ($61 million) in the October-December period from 3.04 billion rupees a year earlier, the maker of Fevicol brand of adhesive said.

The rising construction and infrastructure activity in the country drove demand for construction chemicals, which benefited industrial adhesives and chemical manufacturers like Pidilite.

The company’s revenue increased 4% to 31.30 billion rupees during the quarter.

Sales increased 5% in its consumer and bazaar business, which accounts for nearly 81% of the total revenue. The segment houses Fevicol and the company’s waterproofing brand Dr. Fixit.

A drop in the average price of vinyl acetate monomer, a crucial raw material for adhesives, helped pull down Pidilite’s total costs by 4%.

The company’s shares closed down 5.8% ahead of results. They rose 11.3% in the third quarter.

($1 = 83.1250 Indian rupees)

(Reporting by Yagnoseni Das and Kashish Tandon in Bengaluru; Editing by Eileen Soreng)