PIDILITIND

23rd January, 2024 The Secretary The Secretary BSE Ltd. National Stock Exchange of India Ltd. Corporate Relationship Dept., Exchange Plaza, Plot no. C/1, G Block, 14th floor, P. J. Tower, Bandra-Kurla Complex, Dalal Street, Fort Bandra (E), Mumbai - 400 001 Mumbai - 400 051 Stock Code – 500331 Stock Code - PIDILITIND Sub: Earnings Presentation ------------------------------- Dear Sir, Please find attached the Earnings Presentation for the quarter ended 31st December, 2023. Thanking You, Yours faithfully, For Pidilite Industries Limited Manisha Shetty Company Secretary Encl: a/a Regd. Office Pidilite Industries Limited Regent Chambers, 7th Floor Corporate Office Jamnalal Bajaj Marg Ramkrishna Mandir Road 208 Nariman Point Andheri - E, Mumbai 400059, India Mumbai 400 021 T + 91 22 2835 7000 2835 7952 / 2835 7365 F +91 22 2830 4482 www.pidilite.com ClN:L24100MH1969PLC014336 DISCLAIMER This presentation may contain statements which reflect the management’s current views and estimates and could be construed as forward looking statements. The future involves certain risks and uncertainties that could cause actual results to differ materially from the current views being expressed. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments. 03 3 PERFORMANCE OVERVIEW  Current quarter`s revenue growth was aided by robust Underlying Volume Growth (‘UVG’) of 10.4% across categories and geographies.  Growth was broad based across Consumer and Bazaar (‘C&B’) and Business to Business (‘B2B’) segments with both segments reporting double digit UVG.  Export demand remained strong with double digit UVG.  Both urban and rural markets grew with rural markets outpacing urban growth.  Standalone Gross Margin% continued to expand both sequentially (by 174 bps) and YOY (by 1,191 bps). Higher investment in brands and customer engagement activities continued during the current quarter.  Standalone EBITDA Margins at 25.1% improved by 776 bps over Q3 FY23 and by 188 bps over Q2 FY24.  Domestic subsidiaries recorded robust sales growth with both C&B and B2B subsidiaries registering double digit growth. 03 4 PERFORMANCE OVERVIEW  Despite uncertain global economic conditions, inflation and uncertain political conditions in some countries, International subsidiaries (excluding Pidilite USA Inc.) reported modest sales growth with EBITDA doubling over Q3 FY23. EBITDA Margins improved both sequentially and year on year.  We continue to remain optimistic about market demand in the near term, with increased government spending and the overall improvement in construction activities.  We remain committed to deliver volume led profitable growth via investment in our brands, supply chain, digital infrastructure, innovation and customer facing initiatives. 03 5 EARNINGS SUMMARY Q3’ FY24 NET SALES EBITDA* PBT PAT CONSOLIDATED Rs. 3,119 Cr Rs. 742 Cr Rs. 687 Cr Rs. 511 Cr YOY GROWTH 4.4% 49.7% 64.1% 66.0% STANDALONE Rs. 2,823 Cr Rs. 708 Cr Rs. 694 Cr Rs. 523 Cr YOY GROWTH 4.6% 51.4% 72.1% 76.5% *EBITDA is before non-operating income. 7 EARNINGS SUMMARY 9M’ FY24 NET SALES EBITDA* PBT PAT CONSOLIDATED Rs. 9,447 Cr Rs. 2,129 Cr Rs. 1,953 Cr Rs. 1,443 Cr YOY GROWTH 4.1% 39.6% 46.8% 43.9% STANDALONE Rs. 8,542 Cr Rs. 2,022 Cr Rs. 1,934 Cr Rs. 1,445 Cr YOY GROWTH 4.4% 42.5% 51.2% 49.5% *EBITDA is before non-operating income. 8 SEGMENT SUMMARY - STANDALONE (in INR Crores) Sr. Q3 9M ended PARTICULARS No. Dec'22 Dec'23 Growth (%) Dec'22 Dec'23 Growth (%) 1 Segment Sales a) C&B 2,204 2,324 5.5% 6,584 7,017 6.6% b) B2B 508 532 4.6% 1,683 1,639 -2.6% c) Others 33 10 -70.9% 82 49 -39.6% Total 2,745 2,866 4.4% 8,349 8,705 4.3% Less : Inter Segment Sales 47 43 -8.1% 170 163 -3.8% Net Sales 2,698 2,823 4.6% 8,179 8,542 4.4% 2 Segment Results a) C&B 519 755 45.4% 1,541 2,111 37.0% b) B2B 41 75 85.1% 161 235 45.7% c) Others 4 1 -74.1% 5 3 -39.4% Total Segment Results 563 831 47.4% 1,707 2,349 37.6% Less : i ) Finance Costs 10 7 -25.8% 22 22 0.4% ii) Other unallocable expenditure 150 129 -14.0% 407 394 -3.2% net of unallocable income Profit Before Tax (PBT) 403 694 72.1% 1,279 1,934 51.2% 9 OVERSEAS SUBSIDIARIES PERFORMANCE 9M’ FY24 (in INR Crores) Asia Sales 1% 231.7 234.2 Americas* Sales -35% 11% 209.9 135.6 EBITDA 43.7 39.4 EBITDA Middle East and Africa 1.4 Sales 16% EBITDA 208.1 178.7 -16.2 19.3 5.7 * Includes Pidilite USA Inc -In Q4 FY23, it has been decided to discontinue the operations of Sargent Art Division in a phasedmanner. {Revenue- CY: 34.3 cr(PY: 105.9 cr); EBITDA- CY: -18.6 cr(PY: -1.8 cr)} 10 i) Amounts are like for like actual reported numbers excluding translations and other consolidation impacts and ii) Amounts in ‘bold ‘denotes CY DOMESTIC SUBSIDIARIES PERFORMANCE 9M’ FY24 (in INR Crores) NET SALES EBITDA 500 80 24% 10% 2% 400 356.9 60 54.1 55.2 287.0 300 250.3 226.7 40 200 20 100 8.8 1.8 0 0 C&B B2B C&B B2B 9M FY 23 9M FY 24 9M FY 23 9M FY 24 11 EBITDA is before exceptional items. Figures are reported excluding other consolidation impacts. INDUSTRY SEGMENT COMPOSITION 81.1% 4.4% 7.8% Consumer & Pigment & Industrial Resins, Bazaar products Preparations Construction chemicals (Project) etc. 18.0% Business to Business 0.9% products Others 5.8% 0.9% Industrial Others Adhesives 6.1% Art & Craft Materials etc. 55.7% Adhesives & 19.3% Sealants Construction & Paint Chemicals Standalone Results - % of Total Sales based on FY 2022-23 12 5-Year Performance by Business Segments (Standalone) Numbers represent Percentage of Total Sales Consumer and Bazaar (C&B) Business to Business (B2B) B2B includes Others also 82% 81% 81% 22% 80% 80% 80% 20% 20% 20% 80% 20% 19% 19% 78% 18% 76% 16% 74% 14% 72% 12% 70% 10% 2018-19 2019-20 2020-21 2021-22 2022-23 2018-19 2019-20 2020-21 2021-22 2022-23 13 COMPANY AT A GLANCE Brand established in Adhesives & sealants, History of creating Among the most trusted brands 1959 construction chemicals, strong brands in the country. Other big brands Pioneer in Consumer & art & craft products & include M-Seal, Fevikwik, Fevistik, Specialty Chemicals polymer emulsions Roff, Dr. Fixit, Fevicryl, Araldite, Araldite Karpenter and Araseal. 38 International Exporter of 5 plants manufacturing Pigments and R&D centres in India. facilities in Thailand, Pigment 1 36 Dubai, Brazil, Egypt, emulsions to in Singapore co-makers in India Bangladesh, Sri Lanka & emerging markets Kenya as well as Europe 7 and North America Regional offices 20 overseas subsidiaries 6 14 5 ( direct and step- RDCs 1 down) and Joint 44 Venture Warehouses Rs 831 Cr revenue 8800+ from overseas subsidiaries 14 employees in FY 23 DOMESTIC PRESENCE INDIA OPERATIONS 6,100+ SKUs of 870+ products Domestic Revenue of Rs. 9,713 Cr for FY23 38 plants, 36 Co-makers 5,200+ distributors 44 warehouses 7 regional offices & 5 RDCs 13 domestic subsidiaries (including 1 partnership firm) and 7 associates 15 MARKETING & ADVERTISING Consistent and effective brand building activities across various categories a. Consumer Adhesives & Sealants b. Craftsmen Adhesives c. Waterproofing Chemicals d. Hobby & Craft Colours Several of the brands are well-known in respective categories (Fevicol, Fevikwik, M-Seal, Dr Fixit, Fevicryl, etc.) Award winning advertisements resulting in mass appeal of brands across all segments and geographies. Significant relationship building activities with end users and influencers. Extensive grass root contact with end- users to promote usage of products and brands. 17 CONNECTING DIGITALLY Surat Diamond Bourse 18 SHARE HOLDING PATTERN- 31st December 2023 15.18% Promoters Mutual Funds FPIs 11.49% Others 3.49% 69.84% 20 SHARE PRICE MOVEMENT 125 120 115 110 105 100 95 90 85 80 Pidilite Sensex Rebased to 100 21 CONSISTENT DIVIDEND PAYOUTS 50% 44.5% 42.7% 40.6% 39.9% 40% 36.9% 30% 20% 10% 0% FY19 FY20 FY21 FY22 FY23 Note: The Net Profit considered for above calculation is excluding exceptional items 22 CIN : L24100MH1969PLC014336 Investor Relations Investor.relations@pidilite.co.in Manisha Shetty [CompanySecretary] Ramkrishna Mandir Road, Off Mathuradas Vasanji Road, Andheri (E), Mumbai - 400 059. Phone : +91 22 28357949 Fax : +91 22 28216007 23