India's Pidilite Industries posts Q1 profit rise on strong demand, easing costs

BENGALURU, Aug 10 (Reuters) - Indias Pidilite Industries (PIDI.NS), maker of adhesive brand Fevicol, reported a more than 32% rise in first-quarter profit on Thursday, aided by strong demand and reduced input costs.

The companys consolidated net profit rose to 4.68 billion rupees ($56.53 million) for the three months ended June 30, it said in an exchange filing.

Consolidated revenue from operations rose nearly 6% to 32.75 billion rupees.

The company, also known for its waterproofing product Dr. Fixit and paper-to-paper sticking adhesive Fevistik, said raw material costs dropped nearly 13% to 13.66 billion rupees.

\“Rural markets continued to grow faster, signalling a gradual recovery in the rural economy. However, export of consumer and bazaar products declined due to challenging demand conditions in the overseas markets,\” the company said in a statement.

The consumer and bazaar segment, which sells adhesives, craft materials and construction and paint chemicals to retail users, and accounts for over 80% of Pidilites revenue, posted revenue growth of more than 9%.

\“A combination of moderating input prices and operational efficiencies saw our gross margins improve substantially,\” said Managing Director Bharat Puri.

Pidilites shares rose 10.4% during the quarter.

($1 = 82.7920 Indian rupees)