PI Industries sales up18% in Q1 FY 2015-16

PI Industries Limited (PI), a leading Indian Agri-Input and Custom Synthesis company, recorded an increase of 18% in sales at Rs. 554.8 Crore for the first quarter of FY 2015-16 ended June 30, 2015. Its domestic agri-input registered a 10% rise and custom synthesis exports delivered growth of 26%.

EBITDA stood at Rs. 135.8 crores with margins at 24.5%. This represents an increment of 160 bps over last year. A favourable product mix and efficiencies across the operations resulted in margin enhancement. The Profit Before Tax came in at Rs. 130.2 crore, higher by 25% compared to the previous year.

Performance of domestic Agri Input reflected moderated market sentiment and cautious approach at the start of the season. Overall the Kharif season is showing comfortable improvement over previous year on the back of PI’s branded portfolio of products. Custom Synthesis exports maintained a healthy revenue run-rate. The business saw improvement YoY on the back of muted growth realized during Q1 last year.

Commenting on the performance Mr. Mayank Singhal, Managing Director & CEO, PI Industries Ltd., said: “We are proud of the consistent performance shown by PI over the last several quarters. Our chief achievement is that we are looked upon as a genuine partner for growth by the innovator industry. The principled approach we have taken towards respecting IPR gives us a unique position in the marketplace.

Farmer sentiment ahead of the Kharif season was cautious following the mixed monsoon forecasts that came out initially. Of course the ensuing rainfall in key growing areas has been heartening, leading to acreages going up for several field crops. We have a leading line-up of brands, which are showing good uptake season upon season. During the quarter, we focused particularly on our product mix, to drive a better performance.

Very recently we received approval for one broad spectrum insecticide, which we will be launching in the 3rd quarter; this is in line with our strategy of introducing promising brands into the field, periodically, each year.

Custom synthesis exports showed good growth on the back of increased demand of some of the existing products. We have maintained growth trend with commercialized molecules giving upsides as per plan. With a judicious portfolio mix, we have optimized growth for profitability. Going forward we are looking at commercialising at least 2 new molecules in the next two quarters. The addition of new phases at Jambusar will allow us to extend our robust track-record of growth further.”

Outlook

PI will continue to deliver sustained healthy performance on the back of:

Good growth in the domestic Agri Input owing to higher Kharif sowing that is expected to drive better acreages given the onset of good monsoon; healthy reservoir levels compared to year ago, that will also set the stage for the upcoming Rabi season; periodic introductions of new products driving upsides along with products
launched in the recent few years

Continued momentum in exports: progressive improvement in volume requirements for commercialised molecules; trend of new commercialisations at the rate of 2-3 molecules per year; Jambusar facility scaling up with the addition of new phases