(Reuters) -India’s Pidilite Industries reported an 8.4% year-on-year jump in second-quarter profit on Thursday on the back of healthy demand for its adhesives and sealants.
The company’s consolidated net profit rose for the seventh consecutive quarter to 5.79 billion rupees ($65.87 million) in July-September from 5.35 billion rupees a year ago.
Analysts had said there were signs of recovery in the adhesives segment last quarter, with improved demand and pricing expected in the near-term.
The domestic operating environment is set to improve, supported by favourable monsoons, indirect boost from consumption tax cuts and accelerated growth in the construction sector, said Sudhanshu Vats, Pidilite’s managing director, in a statement.
Pidilite, known for brands such as adhesive Fevicol and sealant Dr. Fixit, reported a nearly 10% rise in its quarterly revenue. Its consumer and bazaar segment, which accounts for about 80% of its overall sales, grew 9.9%.
Prices of vinyl acetate monomer, a key raw material for Pidilite, slipped 3% during the quarter.
Shares of the company closed 1.4% lower ahead of the results.
($1 = 87.8950 Indian rupees)
(Reporting by Yagnoseni Das and Meenakshi Maidas in Bengaluru; Editing by Sahal Muhammed)
