PI INDUSTRIES

PI Industries is an agri input and custom synthesis & manufacturing company  and for Q2FY15, it posted a 8% (YoY) decline in net revenue at Rs.427 crore, with EBITDA falling 21% at Rs.73 crore and net profit for the quarter coming in 11% lower at Rs.49 crore. Domestic agri input revenues were lower than plan due to difficult agro-climatic conditions and custom synthesis exports were lower as per plan.

However, looking ahead, the company has stated that outlook is positive and it is holding higher inventories as at 30 September 2014 to meet increased uptake in coming quarters. It expects to performance in custom synthesis exports to pick up H2 with strong order book position. It has said that with conditions favourable for Rabi given reservoir levels and good moisture content in the soil, H2 will be much better. 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. And these will essentially be the next triggers for the stock.