The company fell short of expectations in Q4 earnings, with consolidated net profit totaling Rs 304 crore compared to an estimated Rs 425 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also missed estimates, coming in at Rs 577 crore rather than the expected Rs 621 crore, resulting in EBITDA margins of 19.9% instead of the anticipated 21.9%. This was primarily due to increased advertising expenditures, with other expenses, including advertising, rising by 25% year-on-year to nearly Rs 600 crore in Q4. However, despite these challenges, gross margins in Q4 improved by 691 basis points from last year, benefiting from lower input prices.

Although consolidated revenue for the March quarter slightly exceeded street estimates at Rs 2,902 crore compared to an expected Rs 2,831 crore, Pidilite's shares took a hit, dropping nearly 6% intra-day to a two-month low before settling at Rs 2,816.16 apiece on the BSE, down 4.54% from the previous day's close.

Looking ahead, Pidilite's CEO, Puri, affirmed the company's commitment to future growth by continuing to invest in new factories, digital infrastructure, and supply chain capabilities. The projected capital expenditure for FY25 is expected to range between Rs 400-800 crore, earmarked for establishing 3-5 new factories. Currently, the company operates 71 plants in India and eight manufacturing units overseas.

Puri emphasized that despite the competitive landscape, advertising and brand-building expenditures would remain substantial. In response to inflationary pressures, advertising spending increased by 70% in FY24 after underspending in FY23. Puri emphasized the importance of proactive investment in brand development to maintain competitiveness.