AgroPages-PI Industries sales up 15% in Q1 FY 2016-17-Agricultural news

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PI Industries expects 15% revenue growth in FY17

PI Industries Ltd posted a net profit of Rs.1,269 million for the quarter ended June 30, 2016, up by 47.7%. Total Income has increased by 15% to Rs.6,830 million. EBITDA stood at Rs. 1,660 million, up 23% on the back of expected growth in sales. Margins saw enhancement by 154 bps from last year’s levels on the back of favourable product-mix.

Exports saw increase of 20% year on year during the period in-line with expectations whereas India displayed healthy growth of 10% despite a delayed onset of the rainfalls.

The scale-up in production at Jambusar on account of additional capacities in place together with execution against robust order book is contributing towards incremental growth.

PI focused on its product-mix in order to drive a superior performance during the Kharif season. The Company maintained its disciplined approach to channel sales thereby resulting in an improved inventory position. ‘Legacee’, which is a new herbicide was made available in key markets and has seen a healthy initial response from farmers.

Commenting on the performance Mr. Mayank Singhal, Managing Director & CEO, PI Industries Limited, said: “Our earnings have shown robust 15% improvement on the back of healthy revenue trends. A good monsoon augurs well for the industry and we are keenly tracking the favourable impact this is having on demand for our products. The momentum for branded products remains attractive as always. A regular introduction of new molecules together with expanded capacities at our SEZ is driving the business forward on the exports front.

We are leveraging our capabilities across the value chain in Agri Sciences by offering integrated and innovative solutions across research & product development, regulatory services, manufacturing services, marketing and farmer connect initiatives. This approach has opened up interesting opportunities that overlap both domestic and global requirements”.

Outlook

The Company expects to continue delivering incremental performance on the back of: higher traction of new line of products including Vibrant, BioVita, Osheen, Keefun and Legacee; sustained improvement in exports, where commercialized molecules are gaining volume traction and operational efficiencies from scaling up of manufacturing activities; consistent augmentation in pipeline that will result in periodic introductions of innovator products.