PI INDUSTRIES

PI Industries is an agri input and custom synthesis & manufacturing company and for the second quarter it posted a net sales at Rs.461 crore, up 55% (YoY) and net profit came in at Rs.55 crore, up 111%. Sequentially, the performance is good but YoY, looks more muted – topline rose 13% and net profit was up just 14%. Obviously, the lower base effect has played more than the operational performance in boosting the YoY bottomline.

The company commenced commercial production at its Jambusar SEZ in January 2013 but there is no breakup of the same given in the performance. It has stated that a significant portion of the volumes growth going forward will be delivered from this new plan but with no breakup it is difficult to know whether the SEZ indeed helped in adding to the earnings. The Board has split the stock face value of equity shares from Rs.5/- each to Rs.1/- each. Q3 and Q4 are usually not the best quarters 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. In Sept, the company increased the limits for investments in its shares by Fll's from 24% to 40%.