PI Industries surges 9% on strong December quarter results

The stock surged 9 per cent to Rs 914 on the BSE on Tuesday in early morning trade after the company reported strong growth of 33 per cent in net profit at Rs 107 crore in December 2018 quarter.

Shares of PI Industries surged 9 per cent to Rs 914 per share on the BSE in early trade on Tuesday, after the company 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.

At 09:42 am, the stock was trading 8 per cent higher at Rs 903 on the BSE, as compared to a 0.1 per cent decline in the S&P BSE Sensex. The stock is quoting close to its 52-week high of Rs 930, touched on February 26, 2018 in intra-day trade. A combined 242,000 equity shares have changed hands on the counter, as against an average of less than 100,000 shares that were traded daily in past two weeks on the BSE and NSE.