Earnings Highlights
• Date of Call: August 8, 2024
• Key Executives: Bharat Puri (Managing Director), Sandeep Batra (CFO)
• Volume Growth: 9.6% overall; Consumer & Bazaar: 8%, B2B: 18%
• Financial Metrics:
• Gross margins improved by 465 basis points YoY
• EBITDA margins at 24.6%
• Consolidated revenues: INR 3,384 crores (6% net sales growth)
Market Insights
• Demand Slowdown: Noted in Kerala, but optimism for festive seasons
• New Product Development: Exterior product insights expected in six months
Pricing and Market Conditions
• VAM Pricing: Fluctuating between $850 and $1,000 due to supply issues
• Pricing Strategy: Stable prices may maintain margins at 20%-24%
Capital Expenditure and Capacity
• Capex Focus: Shift from core to newer categories; stable spending at 3%-5% of sales
• Capacity Utilization: 70%-75% with expansions at 20 plants
Growth Categories
• Revenue Contribution Shift: From 80-20 (core to growth) to 55-45 over 7-8 years
• B2B Portfolio: Healthy growth in industrial adhesives, pigments, and project businesses
• International Exports: Strong growth in Africa and the Middle East
Rural Market Performance
• Rural Growth: 90% from same-store sales; double-digit growth for eight consecutive quarters
• Potential for Penetration: Significant opportunities in existing markets
Real Estate Impact
• Core Category Growth: Currently benefiting from real estate cycle; stronger growth expected in future years
Future Outlook
• Double-Digit Volume Growth: Target remains despite Q1 challenges; Q1 growth at 9.6%
• Real Estate Boom: Anticipated benefits in the coming years

Conference Call Details
• Date: May 8, 2024
• Submission to: BSE and NSE on May 15, 2024
• Key Management: Bharat Puri (Managing Director), Sandeep Batra (CFO)
Financial Performance
• Volume Growth: 15.2% underlying volume growth; B2B growth at 25.2%
• Gross Margins: Improved due to lower commodity costs
• Revenues: Decreased from the previous quarter
• Impairment Charge: One-time charge of INR 20 crores for a manufacturing facility
• Fiscal Year Growth: Robust growth driven by distribution expansion and innovation
Market Insights
• Near-term Demand: Softness attributed to election-related labor shortages and cash flow issues in smaller towns
• FY '25 Outlook: Optimism for performance to match or exceed FY '24, driven by real estate and infrastructure focus
• Domestic Demand: Strong for adhesives; challenges in discretionary categories like furniture
Capital Expenditures and Future Growth
• Depreciation: Future depreciation expected to stabilize around INR 80 crores
• Capital Expenditures: Ongoing investments to enhance profitability, particularly in B2B sector
Advertising and Pricing
• Ad Spending: 70% increase in FY '24 compared to the previous year
• Price Adjustments: No rollbacks in Q4; overall price reduction of about 5% for the year
Business Segments
• Lending Business: In licensing phase; results expected in 6 to 9 months
• Paints Segment: Current pace satisfactory; clearer assessment in 6 months
• Non-core Businesses: Strong growth potential in tile adhesives and waterproofing
Competitive Landscape
• Waterproofing Growth: Robust despite increased competition; significant growth potential identified
• Rural Distribution: Expansion efforts in rural areas; underpenetration of categories noted
Leadership and Strategy
• Leadership Structure: Robust framework needed for diverse portfolio of 37 categories
• Advertising Expenses: Expected to remain around 4% to 4.5% of revenue
• Cross-selling: Occurs among divisions, but quantifying is challenging
Emerging Growth Categories
• Growth Strategy: Transforming pioneer categories into growth categories, now 45% of the business
• EBITDA Performance: Similar gross margins across categories; higher investment needs in growth areas
Conclusion
• Call Closure: Sandeep Batra thanked participants for their engagement.

Earnings Performance
• Q3 FY24 Results:
• Standalone revenue increased by 4.6%.
• Underlying Volume Growth (UVG) at 10.4% across consumer and B2B segments.
• Rural markets outperformed urban growth.
• Margins:
• Improved gross and EBITDA margins due to cost management and strong export demand.
Strategic Initiatives
• Pilot Lending Project:
• Initiated with a focus on profitability.
• Distribution Expansion:
• Increased rural touchpoints from 2,000 to 12,000 in three years.
• Emphasis on rural and semi-urban market growth.
Market Insights
• Demand Trends:
• Overall demand remains decent despite slowdowns in discretionary sectors.
• Construction and housing activities driving demand.
• Competitive Landscape:
• Local competitors present; proactive pricing strategy to maintain market share.
Business Segments
• Paints and Waterproofing:
• Focus on small towns and rural areas.
• Institutional demand for waterproofing surged due to infrastructure investments.
• Adhesives Growth:
• Strong growth in adhesives linked to increased home investments post-COVID.
Future Outlook
• FY '25 Goals:
• Targeting double-digit underlying volume growth and maintaining margins between 20% to 24%.
• Innovation Focus:
• New product launches are crucial for growth, with significant contributions from recent innovations.
Financial Metrics and Guidance
• Volume-Value Gap:
• 10% volume growth vs. 4.5% sales increase attributed to pricing adjustments.
• EBITDA Margin Guidance:
• Target range of 20% to 24%, influenced by raw material price stability.
Distribution Strategy
• Dr. Fixit:
• Stocked by three distinct dealer networks for new construction and renovation.
• Working Capital:
• No pressure on working capital for Dr. Fixit despite increasing dealer margins.
Conclusion
• Management Confidence:
• Optimistic about growth trajectory and market demand, with a focus on user education and innovation driving future success.

Earnings Performance
• Q2 FY24 Results: Standalone revenue increased by 8.2%.
• Market Performance: Rural markets outperformed urban markets.
• Margin Improvements: Enhanced margins due to lower input costs and increased advertising.
Strategic Initiatives
• New Plants: Commissioned eight new plants this financial year.
• Distribution Expansion: Focus on expanding distribution channels.
Lending Business Acquisition
• Acquisition Rationale: Strategic acquisition of a zero-debt promoter group company to expedite lending operations.
• Pilot Project: Lending initiative to start as a pilot in a single geography.
• In-house Lending: Emphasis on leveraging existing data on contractors and dealers for effective management.
Concerns Raised
• Scale of Lending Initiative: Questions about the projected revenue and whether it is a pilot project.
• Expertise in Lending: Concerns about Pidilite's lack of lending experience and cyclical nature of the business.
Rural Market Growth
• Distribution Network: Rapid expansion in rural areas with strong demand for core and new products.
• Araldite Brand: Efforts to build a rural presence for the Araldite brand.
Market Dynamics
• Volume vs. Value Growth: Addressed a gap between volume and value growth due to price corrections.
• Impact of Weather: Slowdown in volume growth attributed to challenging weather conditions.
New Initiatives
• Paints Sector: Early stages of the paints initiative with a pilot phase expected to last six months.
• Rural Outlets: "Pidilite Ki Duniya" program performing well without additional incentives.
Competitive Landscape
• Waterproofing Market: Continued growth and innovation despite increased competition.
Future Outlook
• Growth Goals: Aim to outpace market growth across all segments with double-digit volume growth.
• Long-term Confidence: Confidence in achieving 1.5 times real GDP growth in volume.
Conclusion
• Market Presence: Established presence in the renovation market with optimism for future demand driven by new construction and commercial real estate.

Earnings Overview
• Date of Call: August 11, 2023
• Revenue:
• Standalone revenue: ₹2,952 crores (6.2% YoY increase)
• Consolidated revenue: ₹3,264 crores (5.6% increase)
• Volume Growth:
• 8% underlying volume growth
• 12% growth in domestic Consumer & Bazaar segment
Management Insights
• Key Personnel: Bharat Puri (Managing Director), Sandeep Batra (CFO)
• Future Outlook:
• Focus on capacity building and brand investment
• Optimism despite challenges in international markets
Pricing and Market Strategy
• VAM Pricing: Management maintains margin guidance of 20% to 24%
• Product Mix: High inflation impacts product mix; recent material price decline noted
• Market Focus:
• Optimistic outlook for the US market
• Challenges in Nepal and Bangladesh due to foreign exchange shortages
Growth Initiatives
• Key Initiatives:
• Expanding sales and distribution
• Innovation across product lines
• Enhancing digital capabilities
• Building a resilient supply chain
• Pricing Strategy: Maintains a 10-15% price premium over competitors
Segment Performance
• Consumer & Bazaar: Underlying volume growth of 12%, core categories growing at 1-1.5 times GDP
• B2B Segment: 3% volume growth, challenges in exports but confidence in domestic growth due to government spending
Advertising and Brand Building
• Increased Expenses: Higher advertising and promotional expenses for brand building
• New Products: Transition of some products from pioneer to growth categories
Challenges and Disruptions
• Flooding Impact: Severe flooding in Himachal Pradesh affected seven plants, impacting sales
• Competitive Landscape: Increased discounting but no significant rise in new competitors
Waterproofing Segment
• Market Potential: Estimated 15-18% of overall sales; low penetration in rural areas presents growth opportunities
Technology and Innovation
• AI Usage: Early-stage use of AI, with some details confidential
• Dealer App: 25% of sales now facilitated through a dealer app
Conclusion
• Management's Gratitude: Expressions of thanks to analysts for their engagement during the call.

Earnings Overview
• Date of Call: May 9, 2023
• Consolidated Revenues: ₹11,752 crores for FY22-23 (18.9% increase)
• Q4 Revenues: ₹2,674 crores (7% year-over-year increase)
• EBITDA: Increased by 14.5% to ₹459 crores
• Margin Impact: Decreased by 242 basis points due to rising input costs
Strategic Focus
• Growth Segments: Strong performance in Consumer, Bazaar, and B2B segments
• Future Outlook: Optimistic about growth despite economic uncertainties
• Key Strategies:
• Focus on supply chain resilience
• Emphasis on digital initiatives
Price Adjustments and Market Dynamics
• B2B vs Consumer Pricing: B2B contracts allow quicker price adjustments
• Price Hikes: Cumulative increases of 8% to 10% over the past year; no further hikes unless raw material costs stabilize
• Volume Growth Strategy: Prioritizing stable volume increases and improved product mix
Paint Segment Insights
• Sales Force Utilization: Existing sales force will be leveraged for decorative paints
• Market Strategy: Gradual marketing approach based on dealer feedback
• Gross Margin Potential: Expected expansion due to declining VAM prices
Capacity and Distribution
• Infrastructure Readiness: Sufficient capacity to scale up quickly in the paints sector
• Distribution Network: Among the best in India, supporting long-term strategic goals
Financial and Operational Insights
• Q4 Revenue Decline: Typical for the quarter; digital initiatives contributing over 15% of sales
• CAPEX Plans: Future spending will remain within normal limits
• Talent Management: Focus on building a strong leadership team and unique corporate culture
Market Demand and Investment Strategy
• Demand Environment: Stronger performance in rural and semi-urban areas
• Investment Focus: Long-term growth through marketing and digital initiatives
• Project Focus: Emphasis on renovation rather than new construction
Conclusion
• Call Closure: Expressed gratitude for participants' interest in Pidilite Industries.

Earnings Call Overview
• Date: February 1, 2023
• Key Participants: Managing Director Bharat Puri, CFO Sandeep Batra
• Focus: Financial performance for Q3 FY23
Financial Performance Highlights
• Consolidated Net Sales: ₹9,077 crores (23% increase YoY)
• Consumer and Bazaar segment: 24% growth
• B2B segment: 19% growth
• Quarterly Sales Increase: 5.1%
• EBITDA Margins: Stable despite rising input costs
• Future Outlook: Optimism due to reduced input costs and increased construction activity
Key Discussion Points
• Subsidiary Financials: No disclosure of subsidiary-wise numbers; Araldite revenue included in overall figures.
• GCP Alliance: Details not provided; suggested separate discussion.
• VAM Prices: Expected benefits from lower prices starting Q4.
• Demand Trends:
• Tier 1, 2, and 3 towns showing reasonable demand.
• Urban demand remains steady post-festival season.
• Profitability Focus: Emphasis on profitable volume growth over price increases.
Product and Market Insights
• Core vs. Growth Categories: Core categories dominate; growth categories like waterproofing are being developed.
• E-commerce Growth: Significant increase in e-commerce sales; projected balance between core and growth categories to shift to 50:50 in three years.
• One-Stop Shop Formats: Potential explored; e-commerce contribution expected to align with FMCG averages.
Subsidiary Performance
• Nina and Percept: Strong rebound in B2B waterproofing due to increased infrastructure investments.
• Profitability Guidance: Focus on maintaining EBITDA margins (20%-24%) amidst competition.
Capital Expenditure and Innovations
• Factory Expansions: Completion of several expansions; addition of over 2,100 towns to distribution network.
• Ongoing Initiatives: Sales, distribution, digitization, and product innovation efforts.
Conclusion
• Growth Trend: Positive demand trends continued into January.
• Innovation Goal: Targeting one-third of growth through innovation.
• Araldite Brand Performance: Exceeding revenue and profitability targets since acquisition.
• Investor Engagement: Management expressed gratitude for investor interest.