Pidilite Inds comes unstuck

Currently, Pidilite Inds is the top loser on the BSE, going down 3.5% to an intraday low at Rs.1383.85. Its 52-week high and low is at Rs.1709.85 and Rs.1168.80 respectively.

Interestingly, number of FIIs holding stake in the company have increased from 524 to 562 in Q4FY20.

The stock price is down in the red after it posted  set of disappointing earnings for the quarter. It reported a 33% (YoY) decline in conslidated net profit at Rs.157 crore mainly on account of the Rs.33 crore impairment loss on plant and machinery at its Dahej Elastomer project and a 6% decline in net sales at Rs.1535 crore. What also impacted was the 75% drop in other income at Rs.14 crore v/s Rs.56 crore (YoY).

The operations at all its factories, warehouses and branches have started in a phased manner during May and June with all requisite safety protocols being adhered to in a stringent manner. Most of the employees are working from home and necessary office connectivity is in place.

While April’20 sales ground to a halt due to closure of most markets, in May and June it has seen the country open up for business gradually with Rural markets restarting quicker vis a vis Urban markets. The markets in the South and East have opened up gradually with North and West being slower to open up. Large cities continue to be constrained, especially those in West, North and Central India. The company said that it continues to see challenges around labour availability in its own units – warehouses/factories as well as at users/customers.