PIDILITIND - Pidilite Industries Ltd. Share Price

1. Question: "Do you see even Q4 and Q1, the decline continuing? And could you elaborate what exactly you mean by the geopolitical challenges?"

Answer: "We believe the decline in exports is unlikely to continue in Q4 and Q1. While Q3 was severely impacted, we have plans in place to regain momentum. The geopolitical landscape remains uncertain, notably with ongoing conflicts like Russia-Ukraine and issues surrounding Iran, which could have commercial ramifications. However, we anticipate moving forward positively, especially with the new tariff rates we expect to implement soon."

2. Question: "Are you seeing any level of slowdown in the real estate that is a subset of your overall C&B?"

Answer: "I would like to clarify that our portfolio isn't solely reliant on new construction, with renovation and repair making up about 70-75%. While there is slight variability in new construction, we see growth in ultra-high-end segments and renovation. Therefore, we aren't experiencing significant slowdowns, and our wide-ranging portfolio allows us to adapt to market fluctuations."

3. Question: "Why is the volume growth around 9% or 10% despite increasing A&SP?"

Answer: "The growth of brands and consumer habits doesn't happen overnight, especially in non-e-commerce channels, which require time. We have seen improvements in underlying volume growth during recent quarters"”an increase from last year's growth rates. Our strategy is to sustain this momentum while maintaining EBITDA between 20% to 24%. We aim for continuous improvement in both volume and brand capabilities."

4. Question: "Do you think you have started to gain market share in waterproofing again?"

Answer: "Yes, with the growth seen in our Dr. Fixit brand, we believe we are regaining market share. Our strategy involves focusing on both retail and project segments, enhancing our specifications and reach. We're actively increasing our market engagement and distribution strength, which is showing promising results. We anticipate continued growth in both the waterproofing and tile adhesive categories."

5. Question: "Is there potential to double Roff's growth from current levels?"

Answer: "The growth potential of Roff is indeed there as we work on creating categories and increasing penetration. While doubling growth may be ambitious, we believe enhancing our brand and addressing market needs strategically will yield substantial results. Focus on user education for tile adhesion and strong marketing support will help us capitalize on growth opportunities, but it involves diligent effort and competitive strategies."

6. Question: "Can you give us thoughts around the core adhesive portfolio's growth trajectory?"

Answer: "Our core adhesive portfolio is showing robust single-digit growth, positioned between 1.2 to 1.4 times GDP growth. While we're seeing good momentum, we're focusing on innovations and premiumization to maintain growth. We are implementing various projects that will enhance this trajectory, and subsequent quarters will highlight exciting advancements in our adhesive portfolio."

7. Question: "Is it fair to say that we could breach the 20% to 24% EBITDA margin range significantly upwards?"

Answer: "While current EBITDA margins have shown improvements, our focus remains on driving growth. Although we might appear above this comfort corridor in the short term, our long-term goal is to maintain our margins between 20% and 24%. We believe in reinvesting margin gains while continuing to emphasize stable, sustainable growth."