PIDLITE

Pidilite hit a new 52-week high after it declared its numbers for Q3FY13. It reported a 51% jump in consolidated net profit at Rs.119 crore on a 21% rise in net sales at Rs.927 crore, Its income from other sources jumped 84% to Rs.28 crore and this was due to the Rs.8.83 croreforex gains on forex transaction. What also helped was that its interest burden has come down substantially to a mere Rs.11 lakh from Rs.10.82 crore in Q2FY13. Its PAT got a boost mainly from the forex gain vis-à-vis forex loss of Rs.8 crore in Q2. So adjusted PAT is at Rs.109 crore v/s Rs.104 crore which is a satisfactory number, not as exuberant as a 51% jump.

During the quarter the company converted FCCbs aggregating 104bonds with face value of US$1,00,000/bond into equity shares, resulting in the increase in paid-up capital of the company to Rs.51.26 crore, up from Rs.50.77 crore in Q2FY13. The balance outstanding bonds FCCBs aggregating 205 bonds were redeemed on 7th Dec’12. The company has two divisions—consumer bazaar which contributes over 75% to the topline and industrial chemical which brings in the balance 25%. The company, India’s largest adhesive manufacturer has a strong brand presence through its products - Fevicol, Dr.Fixit, FeviKwik, M-Seal, Hobby Ideas, Moto Max, Fevistik etc. Its net profit of Rs.345 crore for 9MFY13 has already surpassed that of FY12, which was at Rs.324 crore. Clearly, the company is on a very sound footing, fundamentals entrenched with a “Fevicol”.