PI Industries reported strong growth of 33 per cent in net profit in December quarter
PI Industries reported strong growth of 33 per cent in net profit at Rs 107 crore in December 2018 quarter (Q3FY19). The agrochemicals company had a profit of Rs 81 crore in the year-ago quarter.
Revenues during the quarter under review grew 32 per cent at Rs 708 crore against Rs 538 crore in the corresponding quarter of previous fiscal.
The healthy revenue growth mainly contributed by around 40% year-on-year (YoY) growth in exports on account of ramp-up in demand for existing products. Domestic revenue grew by 9 per cent YoY despite soft demand in the current quarter on account of the poor pattern of rainfall in rabi and low agri produce prices, PI Industries said.
Ebitda (earnings before interest, taxation, depreciation and amortisation) margin improved 150 basis points to 21 per cent contributed by better product mix and improved realization and operating leverage benefit.
On the outlook, PI Industries said there is continuing good trends in the domestic business, where branded portfolio will drive expansion and will be supplemented by new launches. The exports will be driven by higher momentum from ramp up in existing products and new introductions.
The company is set to make significant in-roads in the Pharma sector and also has plans to enter the Fluorine space. The much talked of wheat herbicide is expected to be launched in the next year, which has been delayed for quite some time now due to competition issues, HDFC Securities had said in a report.