PI Industries harvests well

PI Industries posted an encouraging set of earnings for Q2FY20. Its Q2 revenue showed 25% (YoY) growth at Rs.907 crore on the back of strong  52% improvement in exports more than making up for the adverse trends in the domestic market. Erratic/delayed advent of monsoon and higher trade inventory dampened domestic demand resulting in a decline of 12% in domestic revenue.

The company’s operating profit was up 43% at Rs.192 crore and margins rose from 18.7% to 21.2%.

The Net Debt to Equity ratio remained at Zero. Cash position as on September 30, 2019 stood at Rs. 171 crore.

The stock price has reacted positively to this news, with the price opening with a gain of 3.2% at rs.1375 and going on to rise almost 9% to an intraday high at Rs.1448.80.