PI Industries sales up 20% in Q2 FY2017

Indian agrochemical company PI Industries Limited (PI) saw a revenue growth of 20% in the second quarter ended September 30th on the back of improved demand in exports with advancement of orders from global customers. Products introduced in the past couple of years and improved product mix has contributed to scale up in volumes during the period. 

 

The company also saw robust growth with incremental revenue of 17% in the first half fiscal year. Utilisation of newly commissioned plants at Jambusar is progressively increasing during the period. 

 

The EBITDA during H1 FY17 was at Rs. 294 crore, showing increase of 35% YoY. Q2 EBITDA stood at Rs. 128 crore, higher by 53% YoY benefiting from a favourable product mix and better operating leverage.

 

Commenting on the performance, Mr. Mayank Singhal, Managing Director & CEO, PI Industries Limited, said: “While the country experienced better monsoon in the first half, delayed onset of monsoons, uneven distribution of rainfall and lower pest infestation impacted the pace of growth in the domestic market. Globally, commodity prices continue be under pressure with slow recovery seen in few crops. Inventory situation is slowly getting adjusted to the newer levels. 

 

Q2’s results performance takes into account the rich product mix, growth in brand sales and advancement of export orders coupled with our execution capabilities to ramp up additional capacities to meet with our customer requirements. A 20% increase in revenues reiterates the scalability of the model of partnering with innovators and delivering to their requirements. 

 

PI’s multi-year strategy of harnessing strengths across the value chain and providing integrated solutions to its customers is bearing fruits”. 

 

Outlook 

 

Growth in second half of FY 17 is expected to be moderate considering current outlook of the global ag chem industry and the advancement in supplies made to our global customers in H1, FY 2017. Rabi season appears favorable with the level of water in the reservoirs, subject to performance of monsoon in certain geographies and the level of pest infestation. The company is on track to introduce and commercialize new products as per plan.