Pidilite Industries Limited

Pidilite Industries Limited
Investor Update
Quarter and period ended December 2014
Coverage
•
•
•
•
Financial Highlights
Business segment wise
Overseas subsidiaries performance
Financial Results
Investor Communication
This investor update covers the Company’s performance for quarter and nine months
ended 31st December 2014.
Contact information
Ms. Savithri Parekh, Company Secretary
E-mail: savithri.parekh@pidilite.com
Telephone: 022-28357949
Financial Highlights
Quarter ended 31st December 2014
Consolidated Performance
•
Net sales at Rs 11,963 M grew by 12.6% over the same quarter last year.
•
Material cost, as a % to sale, increased by 90 Bps as compared to same quarter
last year.
•
Other expenses during the quarter were lower than last year by 2.9% mainly
due to lower A & SP spends.
•
EBIDTA, before non-operating income & exceptional items at Rs 1,934 M grew
by 22.0%.
•
Profit before tax in current quarter is Rs 1,618 M, a growth of 24.9%.
1
Standalone Performance
•
Net sales at Rs 10,757 M grew by 12.2% over same quarter last year. This was
driven by a 12.5% growth in sales of Consumer & Bazaar products and 5.2%
growth in Industrial Products.
•
Material cost, as a % to sales, is higher than same quarter last year by 66 Bps
but 93 bps lower than the immediately preceding quarter.
•
Other expenses during the quarter were lower than last year by 3.3% mainly
due to lower A & SP spends.
•
EBITDA, before non-operating income & exceptional items at Rs 1,882 M is
higher by 22.2% over the same quarter last year.
•
Other income is lower by 41.2% due to lower investment income.
•
As per the requirement of the provisions of Schedule II of the Companies Act,
2013 (the "Act"), the Management has decided to adopt the useful lives as
suggested in Part C of Schedule II of the Act with effect from 1st April, 2014 for
all its fixed assets. Accordingly, depreciation for the quarter is higher by Rs. 41.7
Million.
•
Profit before Tax at Rs 1,607 is higher than last year by 22.6% and Profit after
Tax is higher by 26.1%.
Nine months ended 31st December 2014
Consolidated Performance
•
Net sales at Rs 37,830 M grew by 15.5% over the same period last year.
•
Material cost to sales % is higher than last year by 139 bps largely due to higher
VAM prices.
•
EBIDTA, before non-operating income & exceptional items at Rs 6,400 M grew
by 11.2%.
•
EBIT (before exceptional items) at Rs 5,920 M posted a growth of 9.8%.
•
Profit before Tax (before exceptional items) grew by 10.9% over last year.
•
Profit before tax at Rs 5,750 M grew by 11.5%.
2
Standalone Performance
•
Net sales at Rs 34,124 M grew by 15.5% over the same period last year.
•
Material cost to sales % is higher than last year by 152 bps.
•
EBIDTA, before non-operating income & exceptional items at Rs 6,238 M grew
by 11.2%.
•
Profit before Tax (before exceptional items) grew by 8.7% over last year.
•
Profit before tax at Rs 5,683 M grew by 9.1%.
Business segment wise performance
(Values in Rs Millions)
Quarter ended 31st December 2014
CONSUMER AND BAZAAR PRODUCTS
•
Segment revenue grew by 12.5%.
•
Segment Profit Before Tax and Interest (PBIT) grew by 21.4%.
INDUSTRIAL PRODUCTS
•
Segment revenue grew by 5.2%.
•
Segment PBIT for the quarter grew by 39.0%.
Nine months ended 31st December 2014
3
CONSUMER AND BAZAAR PRODUCTS
•
Segment revenue grew by 16.5% & Segment Profit Before Tax and Interest
(PBIT) grew by 6.7%
INDUSTRIAL PRODUCTS
•
Segment revenue grew by 9.6% & Segment PBIT grew by 9.7%.
Overseas subsidiaries performance
•
The Company has 14 Overseas subsidiaries (4 direct and 10 step-down)
including those having manufacturing and selling operations in USA, Brazil,
Thailand, Dubai, Egypt and Bangladesh.
•
During the quarter, the Company along with its wholly owned subsidiary Pidilite
International Pte ltd. has incorporated a subsidiary company named "Pidilite
Chemical PLC" in Ethiopia for manufacture of adhesives, mastics, paints,
varnishes or similar coatings, printing, writing and painting inks etc.
•
The performance of the following geographies, in constant currency terms,
is detailed below.
Sales - Rs mn
North America
South America
Middle East & Africa
South & South East Asia
Total
EBITDA- Rs mn
North America
South America
Middle East & Africa
South & South East Asia
Total
Q3
2013-14
Q3
2014-15
YTD
2013-14
449.0
396.5
90.4
213.1
487.4
384.7
162.6
229.5
1,472.4
1,086.1
245.9
618.5
1,669.6
1,055.9
412.5
714.8
1,149.0
1,264.2
3,423.0
3,852.9
Q3
2013-14
Q3
2014-15
YTD
2013-14
YTD
2014-15
YTD
2014-15
29.8
(15.7)
(12.8)
36.5
18.5
(15.7)
(11.2)
38.0
107.8
(48.4)
(47.3)
120.5
111.0
(61.9)
(20.5)
135.9
37.8
29.6
132.6
164.5
Sales in constant currency grew by 10.0% during the quarter. However, due to
translation impact the reported sales show a growth of 15.2%.
North America:
4
•
For the Quarter: Sales of Cyclo (Car care chemicals) grew by 4.3% and that of
Sargent Art (Art Materials) grew by 14.1%. Margins in Cyclo business declined
by 440 bps due to change in product mix and margins in Sargent Art declined by
80 bps. EBITDA was lower by 37.8% to Rs 18.5 M in Q3 mainly due to lower
margins.
•
For the period ended 31st December 2014: Sales of Sargent Art grew by
22.9% and that of Cyclo grew by 4.3%. EBIDTA increased by 3.0%.
South America:
•
For the Quarter: Sales declined by 3.0%. Margins improved by 20 Bps over LY
due to price increase. Loss at EBIDTA level at Rs. 15.7 M is same as last year.
•
For the period ended 31st December 2014: Sales declined by 2.8%. Loss
at EBIDTA level increased by 27.9% mainly due to low sales, higher tax &
litigation legal expenses and one-time expenses to implement operational
changes.
Middle East & Africa:
•
For the Quarter: Sales grew by 224.9% in Dubai and Egypt sales grew by
25.6%. Loss at EBIDTA level declined by 11.9%.
•
For the period ended 31st December 2014: Sales grew by 67.7%, with
Egypt growing at 23.4% and Dubai sales grew by 199.5%. Loss at EBITDA level
declined by 56.6% to Rs 20.5 M mainly due to high sales growth.
South & South East Asia:
•
For the Quarter: Sales grew by 7.7% & EBIDTA increased by 4.2%.
•
For the period ended 31st December 2014: Sales grew by 15.6% and
EBIDTA increased by 12.8%.
5
PART II Select information for the Quarter and Nine months ended 31.12.2014
A PARTICULARS OF SHAREHOLDING
1 Public Shareholding
- Number of Shares
- Percentage of Shareholding
2 Promoters and Promoter Group Shareholding
a. Pledged / Encumbered
- Number of Shares
- Percentage of shares (as a % of the total shareholding of promoter and of promoter group)
- Percentage of shares (as a % of the total share capital of the Company)
b. Non-encumbered
- Number of Shares
- Percentage of Shares (as a % of the total shareholding of promoter and of promoter group)
- Percentage of Shares (as a % of the total share capital of the Company)
Particulars
B INVESTOR COMPLAINTS
Pending at the beginning of the quarter
Received during the quarter
Disposed of during the quarter
Remaining unresolved at the end of the quarter
@ For the period only and not annualised.
@
@
18576
4
18572
4908
13664
13664
13664
5126
16102
35
16067
3695
12372
12372
12372
5127
-
153768530
30.00
0
15
13
2
357873800
358873800
100
100
69.81
70.00
3 months ended 31.12.2014
-
154789030
30.19
2.67 @
2.67 @
59195
4127
746
10453
2884
18772
96177
17370
1350
18720
144
18576
-
57854
4405
(2237)
10357
2777
18960
92116
16042
409
16451
349
16102
-
2.41 @
2.41 @
112939
608
113547
30.09.2014
Unaudited
107573
585
108158
31.12.2014
Unaudited
For the Quarter ended
6
359173546
100
70.06
-
153468784
29.94
1.91 @
1.91 @
302
13104
3293
9811
9811
9811
5126
13406
47756
4068
1034
8622
1807
19607
82894
13598
695
14293
250
14043
637
95868
624
96492
31.12.2013
Unaudited
357873800
100
69.81
154789030
30.19
8.28 @
8.28 @
6
56824
14360
42464
42464
42464
5127
56830
176968
12548
2630
31180
7939
57287
288552
54442
3497
57939
618
57321
491
341236
1758
342994
31.12.2014
Unaudited
For the
Year ended
9.14 @
9.14 @
198826
513
63100
16239
46861
46861
46861
5126
63613
200228
18005
(4226)
35826
6863
70190
326886
60938
4294
65232
969
64263
650
385607
2217
387824
359173546 359173546
100
100
70.06
70.06
-
153468784 153468784
29.94
29.94
7.41
7.41
144
51934
13936
37998
37998
37998
5126
52078
145461
14187
2271
26538
5022
52515
245994
51099
2461
53560
845
52715
637
295376
1717
297093
31.12.2013 31.03.2014
Unaudited
Audited
For the Nine months ended
Standalone
2.43 @
2.42 @
142
16183
3769
12414
12414
65
(43)
12436
5127
16325
64478
5547
(2941)
12756
3070
21038
103948
16271
614
16885
560
16325
-
119634
585
120219
31.12.2014
Unaudited
2.71 @
2.71 @
4
18725
5002
13723
13723
194
(27)
13890
5126
18729
64228
5376
521
12804
3132
21910
107971
17493
1507
19000
271
18729
-
124856
608
125464
30.09.2014
Unaudited
1.90 @
1.90 @
335
12959
3335
9624
9624
111
(11)
9724
5126
13294
52194
5061
1376
10736
2126
21662
93155
13724
708
14432
501
13931
637
106255
624
106879
8.43 @
8.42 @
113
57499
14597
42902
42902
360
(70)
43192
5127
57612
193601
16454
2531
38353
8720
65117
324776
55282
3921
59203
1100
58103
491
378300
1758
380058
31.12.2014
Unaudited
(Rs. In Lakhs)
7.35
7.35
180
51588
14067
37521
37521
180
(30)
37671
5126
51768
158294
18639
2659
32730
6129
59376
277827
51433
2495
53928
1523
52405
637
327543
1717
329260
8.77
8.77
190136
555
61232
16527
44705
44705
304
(29)
44980
5126
61787
218143
23848
(5860)
44200
8116
80289
368736
59584
4486
64070
1633
62437
650
426059
2261
428320
For the
Year
ended
31.12.2013 31.03.2014
Unaudited
Audited
For the Nine months ended
Consolidated
31.12.2013
Unaudited
For the Quarter ended
STATEMENT OF STANDALONE & CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2014
1 Income from Operations
a) Net sales / Income from Operations (Net of excise duty)
b) Other Operating Income
Total Income from Operations (net)
2 Expenses
a) Cost of materials consumed
b) Purchases of stock-in-trade
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade
d) Employee benefits expense
e) Depreciation and amortisation expense
f) Other expenses
Total Expenses
3 Profit from operations before other Income, finance costs and exceptional items (1-2)
4 Other Income
5 Profit from ordinary activities before finance costs and exceptional Items (3+4)
6 Finance Costs
7 Profit from ordinary activities after finance costs but before exceptional items (5-6)
8 Exceptional items
Profit from ordinary activities before Foreign Exchange Difference Expense/
9
(Income) (7-8)
10 Foreign Exchange Difference Expense / (Income)
11 Profit from ordinary activities before tax (9-10)
12 Tax Expense
13 Net Profit from ordinary activities after tax (11-12)
14 Extraordinary Items
15 Net Profit for the period (13-14)
16 Share of Profit of associate
17 Minority Interest
18 Net Profit after taxes, minority interest and share of profit of associate (15+16+17)
19 Paid-up Equity Share Capital
(Face value of share : Re. 1/-)
20 Reserves excluding Revaluation Reserves as per balance sheet of previous accounting year
21 Earnings per share (before and after extraordinary item)(of Re.1/- each) :
a) Basic
b) Diluted
Sr.
Particulars
No.
Part I
PIDILITE INDUSTRIES LIMITED
REGD. OFFICE : 7th Floor, Regent Chambers, Jamnalal Bajaj Marg, 208, Nariman Point, Mumbai - 400 021
Tel No. 91 22 2835 7000 Fax : 91 22 2835 6007 Email address : investor.relations@pidilite.co.in
CIN : L24100MH1969PLC014336
Particulars
91347
23271
1191
115809
2870
112939
19971
2671
(119)
22523
144
3807
18572
93686
25124
3686
110243
232739
88025
20389
1233
109647
2074
107573
18928
2507
(277)
21158
349
4742
16067
98694
25400
3780
117241
245115
53448
32131
4124
121537
211240
3671
13104
15590
1806
(371)
17025
250
78220
19386
686
98292
2424
95868
For the Quarter ended
31.12.2014 30.09.2014 31.12.2013
Unaudited Unaudited
Unaudited
98694
25400
3780
117241
245115
11649
56824
63028
6787
(724)
69091
618
281062
65348
3534
349944
8708
341236
53448
32131
4124
121537
211240
12049
51934
59048
6189
(409)
64828
845
241211
59633
2361
303205
7829
295376
For the Nine months ended
31.12.2014
31.12.2013
Unaudited
Unaudited
Standalone
61328
24911
4082
113631
203952
14563
63100
71323
8025
(716)
78632
969
311089
81567
3411
396067
10460
385607
For the year
ended
31.03.2014
Audited
128008
25400
3780
80711
237899
4453
16183
18966
2507
(277)
21196
560
100086
20389
1233
121708
2074
119634
121289
25124
3686
75239
225338
3650
18725
20094
2671
(119)
22646
271
103264
23271
1191
127726
2870
124856
82630
32131
4124
92033
210918
3658
12959
15683
1806
(371)
17118
501
88607
19386
686
108679
2424
106255
For the Quarter ended
31.12.2014 30.09.2014 31.12.2013
Unaudited
Unaudited
Unaudited
82630
32131
4124
92033
210918
12015
51588
59346
6189
(409)
65126
1523
273378
59633
2361
335372
7829
327543
85013
24911
4082
81256
195262
14327
61232
69883
8025
(716)
77192
1633
351541
81567
3411
436519
10460
426059
Mumbai
Dated : 28th January, 2015
10. Previous period figures are regrouped wherever necessary.
7
Chairman & Managing Director
M.B.PAREKH
9. During the quarter, the Company alongwith its Wholly owned subsidiary Pidilite International Pte Ltd. has incorporated a subsidiary company named "Pidilite Chemical PLC" in Ethiopia for manufacture of adhesives,
mastics, paints, varnishes or similar coatings, printing, writing and painting inks etc.
8. During the quarter, the Company alloted 20,500 Equity Shares of face value of Re. 1 each on exercise of stock options to the eligible employees under Employee Stock Option Scheme- 2012.
7. Exceptional item in standalone and consolidated results for the periods ended 31st December, 2014 relates to payment made to employees towards Voluntary Retirement Scheme.
6. During the period, management reassessed that the economic benefits derived from goodwill will be for atleast 10 years and accordingly has revised the amortisation of goodwill from 5 years to 10 years. Due to the
revision, depreciation for the quarter is lower by Rs.229 lakhs and profit before tax is higher by Rs.229 lakhs; and depreciation for nine months is lower by Rs.262 lakhs and profit before tax is higher by Rs.262 lakhs.
5. As per the requirement of the provisions of Schedule II of the Companies Act, 2013 (the "Act"), the Management has decided to adopt the useful lives as suggested in Part C of Schedule II of the Act with effect from
1st April, 2014 for all its fixed assets. Accordingly, depreciation for the quarter is higher by Rs. 417 lakhs and for the period ended 31st December, 2014 is higher by Rs.1909 lakhs.
4. Unallocated Capital Employed as at 31st December, 2014 includes a) Capital Work in Progress of Rs. 36549 lakhs (31st December, 2013 Rs. 36850 lakhs) of Synthetic Elastomer Project b) Investments in units of
mutual funds/ term deposit with banks and others Rs. 31434 lakhs (31st December 2013 Rs. 29061 lakhs).
3. The Company has opted to publish Standalone as well as Consolidated financial statements.The Consolidated financial results prepared as per Accounting Standard (AS-21) and Accounting Standard (AS-23)
comprise the results of Pidilite Industries Ltd. (Holding Company), 20 subsidiary companies, two partnership firms and one associate Company.
2. The Statutory Auditors have carried out a "Limited Review" of the standalone unaudited financial results for the quarter and nine months ended 31st December, 2014.
128008
25400
3780
80711
237899
11141
57499
63677
6787
(724)
69740
1100
318126
65348
3534
387008
8708
378300
For the year
ended
31.03.2014
Audited
(Rs. In Lakhs)
For the Nine months ended
31.12.2014
31.12.2013
Unaudited
Unaudited
Consolidated
1. The above results have been reviewed by the Audit Committee on 27th January, 2015 and approved by the Board of Directors at their meeting held on 28th January, 2015.
Notes:
1 Segment Revenue
a) Consumer & Bazaar Products
b) Industrial Products
c) Others
Total
Less : Inter Segment Revenue
Net Sales / Income From Operations
2 Segment Results
a) Consumer & Bazaar Products
b) Industrial Products
c) Others
Total
Less : i) Interest
ii) Other Unallocable Expenditure Net Of Unallocable Income
Total Profit Before Tax
3 Capital Employed
a) Consumer & Bazaar Products
b) Industrial Products
c) Others
d) Unallocated
Total Capital Employed
Sr.
No.
---- 2 ---REPORTING OF SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED