Pidilite Industries Ltd Q1 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Avi Mehta - Macquarie Research - Analyst : Sir, I just wanted to first check on the VAM price update, if you could give us a sense on where wine prices were for the quarter. I think I missed that in the opening comments it's a good kind of... Please share that... Go ahead, Sandeep.

Question: Avi Mehta - Macquarie Research - Analyst : And sir, what's the current pricing like right now?

Question: Avi Mehta - Macquarie Research - Analyst : Okay. Perfect, Sir, I just wanted to also understand building up from the last quarter conference call, we've clearly achieved the margin expectation from March, which we saw 20%. We are now at 21.5% roughly or so -- how should we look at -- do you see there is an upside risk to that guidance on EBITDA margin of 2024, maybe it should be 22% to 24%? Or if you could give us some sense on how should we look at margins as we go forward? And b, if you could also give us an update on what happened to the reversal of consumer downgrades that you were kind of discussing in the last time, the product downgrades.

Question: Avi Mehta - Macquarie Research - Analyst : Okay. So maybe -- I mean, if I recollect from the last time, you had indicated that there was a sense on when the high inflation period kind of reverses, we can see some impact on the mix as we go forward. That is what I wanted to understand if that has panned out in terms of the mix as in lower-priced products or lower margin products have done better? Or is there anything of that sort that we have...

Question: Avi Mehta - Macquarie Research - Analyst : Perfect... That's clear, then I probably -- what I was trying to kind of understand is that when the nation was high, I thought the mix was impacted and that would have reversed, but I got maybe that impact in timeout, my understanding was impacted...

Question: Avi Mehta - Macquarie Research - Analyst : No, that's all from my side. I'll come back in the queue for the other question.

Question: Avi Mehta - Macquarie Research - Analyst : I just had 2 follow-ups. One was on the competitive intensity. Has there been any increase from regional competition because of the price of that... REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 11, 2023 / 10:30AM, PIDI.NS - Q1 2024 Pidilite Industries Ltd Earnings Call

Question: Avi Mehta - Macquarie Research - Analyst : Okay. And just to kind of understand from a thought process perspective, the way you see this is -- if demand needs it, we will take price cut. Otherwise, it is going to be -- it's the need from competition so that we ensure that we are not significant premium from peers. Is that the way I should look at your price cut? Or how you look at that...

Question: Avi Mehta - Macquarie Research - Analyst : Okay. Perfect. So it is going to be more -- in case you face that competition, that's when we should kind of look at price cuts as of now, not otherwise.

Question: Avi Mehta - Macquarie Research - Analyst : Got it, sir, and sir, second is just an understanding question. I'm not clear yet on how is the current reporting different from the volume plus mix that you used to give earlier because the numbers have changed. So I'm not sure what has changed or what has driven that change?

Question: Avi Mehta - Macquarie Research - Analyst : I mean, what I was trying to get to is, I thought the volume plus mix the earlier way we used to give was also kind of capturing the mix impact and essentially doing the comparison. So as a servicing earlier that we kind of take -- would take a lower share and kind of take that mix impact in that sense. I thought that was coming in the last time, but maybe I'll take it off and I'm still not very clear on what exactly changed that...