PI INDUSTRIES
PI Industries is an agri input and custom synthesis & manufacturing company and for the first quarter ended 30th June 2014 it posted good numbers, with net sales rising 16% (YoY) at Rs.471 crore. EBITDA rose 37% at Rs.108 crore and net profit for the quarter came in at Rs.72 crore, up 48%. Growth in the domestic business stood at 26% YoY. Custom synthesis exports have delivered on trend (7% growth YoY) on top of the larger upside achieved in the previous year. Margins for the quarter were up by strong 400 bps at 23%. Consistent gains in performance while maintaining healthy cash flows has translated into a stronger balance sheet. Total debt stood at Rs. 54.89 crore as on June 30, 2014 from Rs. 86.01 crore (YoY).
The company’s 2-3 molecules are scheduled to commercialized during the current fiscal and expansion work at its Jambusar SEZ is also on. These two factors, plus launch of one new broad spectrum insecticide is expected to add impetus to its growth in current fiscal. Monsoons have been delayed and this could mean Q2 might see some more sowing and this could mean better numbers. Q3 and Q4 are as such 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.