Pidilite Industries Ltd conducted the concall today at 4:00 pm.
" Increase their distribution channel and maintaining its cost for future. "
Here are the Conference call highlights
@dmuthuk @connectgurmeet
☎️🧵
" Increase their distribution channel and maintaining its cost for future. "
Here are the Conference call highlights
@dmuthuk @connectgurmeet
☎️🧵
Outlook
- Fevicol Company has delivered strong growth during this period.
- Second wave of covid had surely disrupted the business community, and returning to normalcy has been a big relief.
- Fevicol Company has delivered strong growth during this period.
- Second wave of covid had surely disrupted the business community, and returning to normalcy has been a big relief.
- In business, their B2B and consumer and bazaar products has delivered strong growth during this period.
- This was possible due to industrial and other businesses growth.
- This was possible due to industrial and other businesses growth.
- Company is a large brand and has many niche products as well like steel grip, terminator and Motomax.
- Lots of success is seen in their B2C route and The company is working with many ecommerce players and other for its growth.
- Lots of success is seen in their B2C route and The company is working with many ecommerce players and other for its growth.
- On subsidiary front, company has 20 overseas subsidiaries and 1 JV.
- These subsidiaries delivered strong growth and have reported both currency revenue growth and strong earnings growth.
- These subsidiaries delivered strong growth and have reported both currency revenue growth and strong earnings growth.
- The Asian markets has been a major target area for their sales. It has grown by huge percentage on QOQ levels.
- The Asian markets are been followed by American markets and then Market East and African markets.
- At present, international markets are outperforming domestics.
- The Asian markets are been followed by American markets and then Market East and African markets.
- At present, international markets are outperforming domestics.
- The company has made big changes in its global strategy 2-3 years back and it had given good results.
- They had faced issues as well in many countries but over long term this situations are expected to get cleared.
- They had faced issues as well in many countries but over long term this situations are expected to get cleared.
- On domestic front, company has 15 domestic subsidiaries, 2 associate's and 1 partnership firm.
- They were hampered most with lockdown and have started to report growth from June onwards.
- They were hampered most with lockdown and have started to report growth from June onwards.
- Company has a target to increase their distribution areas.
- They have realised in last 15 months many of local and rural are yet to get covered.
- They have even entered into partnership with HUL for making gain for india.
- They have realised in last 15 months many of local and rural are yet to get covered.
- They have even entered into partnership with HUL for making gain for india.
- Company has already been in competition for new areas like water proofing, they just have a focus of maintaining their leadership positions.
- As new players enter, market tends to widen and hence new opportunities come up.
- As new players enter, market tends to widen and hence new opportunities come up.
- It's difficult to mention industrial growth rate, but for PAPL Ltd, it's a growth brand for them and will do wonders in futures.
- They expect to be 65 to 70% leader in its key markets.
- They expect to be 65 to 70% leader in its key markets.
Financials.
- As compared to last quarter net sales have grew by 120% approx.
- There has been a % rise in their material cost as well.
- On standalone basis company has delivered strong PAT growth by 408% excluding dividends from subsidiary.
- As compared to last quarter net sales have grew by 120% approx.
- There has been a % rise in their material cost as well.
- On standalone basis company has delivered strong PAT growth by 408% excluding dividends from subsidiary.
-Their key raw materials cost has risen to a higher level and company is been taking all the necessary steps to curb it.
-On PAPL, it's a premium customer part business but no growth is seen in margins due to high cost.
-Some subsidiaries are in real estate and margins are less
-On PAPL, it's a premium customer part business but no growth is seen in margins due to high cost.
-Some subsidiaries are in real estate and margins are less
- On real estate front, There has been good clearence of inventory, and as new projects are expected to launch, till that time company waits for opportunities to come up.
- On global level, chemical prices are highly volatile and linking to it a consolidation might be seen.
- On global level, chemical prices are highly volatile and linking to it a consolidation might be seen.
- They expect the prices to be back to a comfortable zone, to cover from the input cost inflation.
- Company is studying it's products closely, they want to have good price elasticity.
- Company is studying it's products closely, they want to have good price elasticity.
- Company sets a target to maintains its brand Premium by 10 to 20%.
- On Capex front, they spend 4 to 6% of their turnover. And from covid they understood, the need to keep evolving its business from all prespective. To be ready for future growth.
- On Capex front, they spend 4 to 6% of their turnover. And from covid they understood, the need to keep evolving its business from all prespective. To be ready for future growth.
- Company has very clear agenda , organically and inorganically. They have got ability to get best deals in market.
- Art and craft fall had a huge impact on company.
- As schools got closed major market was on hold.
- Art and craft fall had a huge impact on company.
- As schools got closed major market was on hold.
- At end , the company is ready to take upon any opportunities and any key areas for further growth.
- Company is expecting to launch 6 factories in which 2 are ready.
- For company, They try and launch new products in international markets and then launch it in india.
- Company is expecting to launch 6 factories in which 2 are ready.
- For company, They try and launch new products in international markets and then launch it in india.
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