{"id":145571,"date":"2023-05-10T03:45:05","date_gmt":"2023-05-10T07:45:05","guid":{"rendered":"https:\/\/44.250.171.167\/?p=145571"},"modified":"2023-05-10T03:45:06","modified_gmt":"2023-05-10T07:45:06","slug":"pidilite-industries-limited-q4-fy23-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/pidilite-industries-limited-q4-fy23-earnings-conference-call-insights\/","title":{"rendered":"Pidilite Industries Limited Q4 FY23 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Pidilite Industries Limited (PIDILITIND) Q4 FY23 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>[00:05:54] PIDILITIND said it is hopeful for the future and expects profitable growth due to lower input costs, less inflation, and growth in infrastructure and construction.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>[00:06:56] Abneesh Roy from Nuvama enquired about the launch and promotion of deco paints interior, and company&#8217;s approach to connecting with painters and competitiveness relative to the market leader. Bharat Puri MD said PIDILITIND have been in the paint business for a long time and launched a new range of paints due to demand from dealers. PIDILITIND\u2019s user connect is strong and is one of its secret sauces.<\/li>\n<\/ul>\n<ul>\n<li>[00:09:29] Abneesh Roy of Nuvama asked why did B2B profits grow faster than Consumer and Bazaar profits, despite Consumer and Bazaar sales growing faster, and inflation affecting profits. Bharat Puri MD replied that B2B businesses can raise prices faster due to shorter contract periods, while in Bazaar it takes longer due to inventory in trade and RM inventory. B2B businesses can also recover margins quicker due to its ability to get and give back prices faster. Industrial products have lower raw and packing material inventory, resulting in quicker consumption rate drops.<\/li>\n<\/ul>\n<ul>\n<li>[00:13:28] \u00a0Sonali Salgaonkar at Jefferies queried about the approximate cumulative increase in price hikes over the past 12 months and if PIDILITIND will give away some price hikes to drive volumes. Bharat Puri MD said weighted figures for price hikes are difficult to provide as RM situations vary by vertical. PIDILITIND does not plan on future price increases and will focus on profitable volume growth. If the premium exceeds 15%, it will cut prices.<\/li>\n<\/ul>\n<ul>\n<li>[00:15:41] Sonali Salgaonkar at Jefferies asked how PIDILITIND sees demand in Consumer and Bazaar and B2B in 1Q and if better traction in B2B is expected due to the strong capex survival cycle. Bharat Puri MD replied that in Q4, rural and semi-urban sales grew faster than urban sales and the company is benefiting from the upsurge in real estate and construction. International markets where the company exports directly are seeing declines while domestic B2B demand remains strong. International B2B is uncertain.<\/li>\n<\/ul>\n<ul>\n<li>[00:18:01] Sonali Salgaonkar at Jefferies asked how is competition shaping up with paint companies entering into some of the products that PIDILITIND offer. Bharat Puri MD answered that the company is experienced in facing new competitors every year but remains a leader in growth areas by prioritizing customer satisfaction.<\/li>\n<\/ul>\n<ul>\n<li>[00:20:07] Avi Mehta from Macquarie enquired how is the interplay between volume growth and realization growth moderation playing out in FY24 with input cost moderation. Bharat Puri MD said the focus this year will be on volume growth and better product mix, with no expected price-led growth. The aim is to exceed value growth with volume growth and mixed growth.<\/li>\n<\/ul>\n<ul>\n<li>[00:23:04] Avi Mehta from Macquarie asked if the normalized range of margins of 20% to 24% pan out in the first quarter without any headwinds or will it take time to reach that level. Bharat Puri MD said the company&#8217;s margins are at the normalized range and are expected to remain there in the first quarter, with potential investment in some areas in one or two quarters.<\/li>\n<\/ul>\n<ul>\n<li>[00:23:57] Jay Doshi at Kotak enquired about PIDILITIND\u2019s expansion into decorative paints, including sales and distribution team, plans for expanding reach, and marketing strategy for the portfolio. Bharat Puri MD said PIDILITIND will use its existing sales force for home improvement to distribute paints and may add separate salespeople for certain activities. The marketing strategy will be gradual, focusing on dealer reaction and taking it step by step.<\/li>\n<\/ul>\n<ul>\n<li>[00:27:38] Jay Doshi at Kotak asked about innovation and new product launches. Bharat Puri MD replied that PIDILITIND has introduced new products in various divisions and regions to promote innovation and growth. The new products include two waterproofing solutions, Fevicol Homefix for maintenance, Fevicol Hiper Star for woodworking, a range of sealants, and a complete range of Roff tiling adhesive.<\/li>\n<\/ul>\n<ul>\n<li>[00:29:05] Sheela Rathi from Morgan Stanley asked about the capacity built on the decorative paint segment currently or 12 months from now. Bharat Puri MD said PIDILITIND already had capacity in the coatings business and paints is not capital intensive. PIDILITIND has adequate capacity to scale up rapidly if it chooses to.<\/li>\n<\/ul>\n<ul>\n<li>[00:29:26] Sheela Rathi from Morgan Stanley asked about the target distribution. Bharat Puri MD said PIDILITIND has a strong distribution network and calls on a large number of paint outlets. PIDILITIND will adjust costs as needed and have unique marketing strategies with a long-term view.<\/li>\n<\/ul>\n<ul>\n<li>[00:34:36] Purshotham from Mintec Services enquired the reason for 4Q23 consolidated revenue declined vs. 3Q23. Bharat Puri MD said historically 4Q has been the smallest quarter in terms of revenue for the company, with 3Q being the biggest and 1Q also being significant.<\/li>\n<\/ul>\n<ul>\n<li>[00:34:43] Purshotham from Mintec Services asked what percentage of FY23 annual revenue was generated through digital channels and what digital initiatives has the company embarked on. Bharat Puri MD said PIDILITIND launched a dealer app that enables dealers to place orders with distributors. This digital initiative generated over INR 1,000 crores in revenue, representing more than 15% of the Consumer and Bazaar business sales.<\/li>\n<\/ul>\n<ul>\n<li>[00:43:28] Ritesh Shah from Investec asked what percentage of PIDILITIND sales is actually bundled. Bharat Puri MD said there is no standard answer for how the separation of trades such as mason, plumber, and painter differs by geography and town class as it varies based on geography and practices.<\/li>\n<\/ul>\n<ul>\n<li>[00:48:32] Ritesh Shah at Investec asked which four states were being ventured into by the company and the reason for choosing those states. Bharat Puri MD clarified that the company did not indicate four states, but two states: AP and Telangana. These states were chosen due to their proximity to the company\u2019s manufacturing location.<\/li>\n<\/ul>\n<ul>\n<li>[00:50:00] Keyur of ICICI asked that in the current demand environment, what is holding the company back from giving guidance on near-term demand. Bharat Puri MD said PIDILITIND is facing uncertainty due to global factors such as geopolitical issues, recession in the west, muted demand, and currency crises in developing economies. However, demand in rural and semi-urban India has returned to normal levels.<\/li>\n<\/ul>\n<ul>\n<li>[00:52:29] Keyur of ICICI enquired how does the company plan to grow its business in terms of completing its portfolio and infrastructure such as paint tinting machines. Bharat Puri MD replied that the company already has the necessary infrastructure in place, including tinting machines for exterior paints.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Pidilite Industries Limited (PIDILITIND) Q4 FY23 Earnings Concall Management Update: [00:05:54] PIDILITIND said it is hopeful for the future and expects profitable growth due to lower input costs, less inflation, and growth in infrastructure and construction. Q&amp;A Highlights: [00:06:56] Abneesh Roy from Nuvama enquired about the launch and promotion of deco paints [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"Pidilite Industries Limited Q4 FY23 Earnings Conference Call Insights #PIDILITIND #Q4 #FY23 #Earnings #Stocks","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5753],"tags":[9759,11170,10169],"class_list":["post-145571","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-industrials","tag-adhesives","tag-construction-chemicals","tag-earnings"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":129648,"url":"https:\/\/alphastreet.com\/india\/pidilite-industries-limited-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":145571,"position":0},"title":"Pidilite Industries Limited Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 20, 2022","format":false,"excerpt":"https:\/\/youtu.be\/5W_i6dTxXI8 Key highlights from Pidilite Industries Limited (PIDILITIND) Q4 FY22 Earnings Concall Q&A Highlights: Abneesh Roy from Edelweiss asked about the competitive intensity in adhesives from regional players. Bharat Puri MD said that intensity over the last 1-2 years have been lesser than normal, largely due to large number of\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":137078,"url":"https:\/\/alphastreet.com\/india\/pidilite-industries-limited-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":145571,"position":1},"title":"Pidilite Industries Limited Q2 FY23 Earnings Conference Call Insights","author":"Praveen","date":"November 22, 2022","format":false,"excerpt":"Key highlights from Pidilite Industries Limited (PIDILITIND) Q2 FY23 Earnings Concall Q&A Highlights: [00:06:02] Avi Mehta from Macquarie asked about VAM consumption rate for the quarter. 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And in 2Q22, it was $2,071 per tonne.\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":166607,"url":"https:\/\/alphastreet.com\/india\/pidilitind-q3-2024-2025-call-highlights-rural-demand-resilience-crude-price-challenges-distribution-expansion\/","url_meta":{"origin":145571,"position":2},"title":"PIDILITIND Q3 2024-2025 Call Highlights: Rural Demand Resilience, Crude Price Challenges &#038; Distribution Expansion!","author":"Praveen","date":"January 27, 2025","format":false,"excerpt":"Pidilite Industries Ltd., a leading adhesives manufacturer in India renowned for its adhesive brands like Fevicol and Dr. Fixit, in its Q3 earnings call discussed about softening in both urban and rural markets, with rural areas still showing stronger growth. 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[00:11:18] INDIGOPNTS is beginning to start work on setting up a state-of-the-art 90,000 KL per annum paint plant at Jodhpur. 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