PI INDUSTRIES

PI Industries is an agri input and custom synthesis & manufacturing company. The stock was up yesterday on the back of its financial performance for Q3FY13 wherein, YoY on a 48% rise in net sales at Rs.282 crore, the company posted a 118% jump in net profit at Rs.24 crore. But this YoY jump is thanks to the forex; in Q3FY12, the company had a forex loss of Rs.6.49 crore and in current Q2, it had a small forex gain of Rs.69 lakh. Thus the lower base effect has played more than the operational performance in boosting the YoY bottomline. Also, sequentially, the numbers do not look at that great with net sales showing a drop of 5% and net profit was down 8%.

The company has commenced commercial production at its Jambusar SEZ and stated that a significant portion of the volumes growth going forward will be delivered from this new plan. The Board has also recommended split in the stock face value of equity shares from Rs.5/- each to Rs.1/- each. Q4 is usually not the best month for an agri input company and as the company has stated, a lot will depend on its ability to launch new products and its SEZ starting to contribute to its income.