Pidilite Industries Reports Strong Financial Performance in Q2 FY25

Pidilite Industries, a leading FMCG company in India, has recently announced its financial results for the quarter ended September 2024. The company has shown a positive performance in this quarter, with a score of 8 out of 20, which is an improvement from the previous quarter.

One of the key highlights of the financials is the company’s strong operating cash flow, which has been consistently growing over the last three years. In the last fiscal year, Pidilite Industries recorded the highest operating cash flow of Rs 2,724.03 crore. This indicates that the company has been able to generate higher revenues from its business operations.

Another positive aspect of the financials is the company’s Profit After Tax (PAT) for the first nine months of the fiscal year. The PAT has grown by 20.97% year on year, reaching Rs 1,453.25 crore. This shows a positive trend in the company’s near-term profitability.

On the other hand, Pidilite Industries has also seen a consistent growth in its Dividend Payout Ratio (DPR) over the last five years. The company has maintained a high DPR of 47.06%, which means that it is distributing a higher proportion of its profits as dividends to its shareholders.

However, there are some areas that need improvement for Pidilite Industries. The company’s non-operating income, which includes income from non-business activities, has been on the rise in the last five quarters. While this may seem like a positive trend, it is important to note that this income may not be sustainable in the long run.

In conclusion, Pidilite Industries has shown a positive financial performance in the quarter ended September 2024. With a strong operating cash flow and a growing PAT, the company is on the right track. However, investors should keep an eye on the non-operating income and its sustainability in the future. Based on the current financials, MarketsMOJO has given a ‘Hold’ call for Pidilite Industries’ stock.