PI Industries sales up 11% in H1 FY 2016

Net Revenue

PI Industries Limited (PI), a leading Indian Agri-Input and Custom Synthesis company, recorded an increase of 5% in sales at Rs. 446.1 Crore for the second quarter of FY 2015-16 ended Sep 30, 2015. Domestic agri registered a growth of 10% and the Custom synthesis exports performance was flat during the quarter. Domestic agri-inputs saw healthy momentum in PI’s branded portfolio of products, which continue to give direction to growth. Custom synthesis exports have shown moderation in momentum during the quarter due to deferred off take schedule of customers, whereas full-year trajectory is expected to be maintained.

For the H1 FY16, revenues showed 11% improvement to Rs. 1,000.9 Crore on account of 10% gains in domestic agri-inputs and 14% increase in custom synthesis exports.

EBITDA

During Q2 FY16, the EBITDA stood at Rs. 84.8 crore with margins showing enhancement of 200 bps to19.0%. A favourable line-up of branded products and moderating input prices supported margin growth in domestic agri-inputs. The growing share of custom synthesis exports continues to drive margin expansion.

For the H1 FY16, EBITDA has shown gains of 22% at Rs. 220.6 crore. Margins stood better at 22.0%,representing an increase of 190 bps.

Post-tax Earnings

In Q2 FY16, PI delivered 19% increase in Profit After Tax at Rs. 58.2 crore. The Basic EPS stood at Rs. 4.26 per share.

Profit After Tax during H1 FY16 came in at Rs. 145.5 crore, higher by 21%. This translated into Basic EPS of Rs. 10.66 per share from Rs. 8.85 per share.

Commenting on the performance Mr. Mayank Singhal, Managing Director & CEO, PI Industries Ltd., said:“PI continues to record growth owing to an attractive portfolio of branded, in-licensed products in domestic agri-inputs and sustained growth in commercialized molecules of customs synthesis exports.

Innovators recognise the value of having a partner whose foundation is based on respect for IPR. It is something we hold most important. Our portfolio of branded products remains well-positioned to benefit from the opportunity in the domestic market. Farmers are showing strong loyalty towards us, owing to the performance of these products and their contribution towards raising productivities at the field level. The poor distribution and quality of the s-w monsoon has led to some crop shifting this season. However with our optimized product mix for Kharif, we have been able to record growth in these difficult market conditions.

We intend to steadily expand the leadership portfolio of products by introducing 1-2 new products each year; with an insecticide and growth regulator ready for launch this year. The contribution from these products will augment the upsides that we are seeing from similar introductions made in the recent past years.

Custom synthesis exports are performing to plan, with some deliveries getting earmarked for the second half of the year, as it happens in some instances. We have a robust combination of already commercialised molecules, which are showing growth in global requirement. We remain keen to accelerate the pace of production and will be commercialising 1-2 new molecules every year so as to sustain growth delivery.”

Outlook

With the outlook for Rabi outlined by a deficit monsoon and depleted reservoir levels, growth in the domestic agri-inputs will be a result of strong line-up of branded products and optimised product mix attuned to market requirement; upsides in products with in-licensed molecules that were launched in the recent past;introduction of promising new products from a rich pipeline.

Continued robust gains in export business:enhancement in production level in line with higher requirement for already commercialised molecules; established practice of commercializing 1-2 molecules every year; opportunities that the Jambusar facility can tap post expansion.