One-off Quarter; Recovery Expected in Ensuing Quarters Pidilite Industries has reported a subdued performance in 1QFY18 on the backdrop of GST rollout. Its consolidated sales fell by 2.6% YoY to Rs15.3bn owing to flat volumes. While EBITDA fell by 18.5% YoY to Rs3.2bn, net profit declined by 16.8% YoY to Rs2.3bn in 1QFY18. Although the headline performance was muted, we consider it transient in nature as revenues suffered due to inventory de-stocking in June before the roll-out of GST w.e.f July, 01, 2017. Strong brands, superior management bandwidth, market leadership, pricing power and huge underserved market continue to be the key strengths of Pidilite. We expect the Company to post consolidated revenue and earnings CAGR of 13.9% and 16.4%, respectively through...