P I Industries rallied 6.14% to Rs 1,414.05 after consolidated net profit jumped 30.2% to Rs 123.20 crore on 25.5% surge in net sales to Rs 907.40 crore in Q2 September 2019 over Q2 September 2018.
The announcement was made after trading hours yesterday, 23 October 2019.EBITDA soared 42.6% to Rs 192 crore in Q2 September 2019 as against Rs 135 crore in Q2 September 2018. EBITDA margin stood at about 21% this quarter despite softness in domestic market and ramp-up cost in new manufacturing facilities.
Revenue grew on the back of strong 52% improvement in exports, more than making up for the adverse trends in the domestic market. New products commercialized in last few years are showing continued momentum with future enquires indicating a healthy trend. Erratic/delayed advent of monsoon and higher trade inventory dampened domestic demand resulting in a decline of 12% in domestic revenue.
The company's effective tax rate was at 27% due to change in SEZ share to overall business. Sustained gains in performance have resulted in strong operating cash position and a robust balance sheet. The net debt to equity ratio remained nil. The cash position as on 30 September 2019 stood at Rs 171 crore.
In its outlook, the company said that it expects that sustained introduction of high-potential brands targeting variety of crops and regions would enable good Rabi showing improved traction in-line with planned development initiatives. Further, a sustained growth in exports, given higher requirement for commercialized molecules, would result in progressive commissioning of additional capacities and help towards enhancing the delivery run rates.
Commenting on the results, Mayank Singhal, the vice-chairman and managing director of PI Industries, has said that, "We have reported another great quarter backed by strong performance in exports. We are on the verge of commissioning another multi-purpose plant in Jambusar facility to support our ever expanding demand in export business. We are witnessing a healthy increase in number of enquiries and expect to commercialize 2-3 molecules in current year. We have also been able to add new customers to our portfolio as innovator partners seek to benefit from PI's capabilities and experience, backed by the trust we have built with them.
Kharif has seen uneven distribution of rainfall while overall rainfall was near normal. Due to this uneven & erratic spread of monsoon, industry has seen a far softer off-take than expected. On the other hand, with good monsoon and higher water availability in reservoir, we expect a better Rabi season this year. I must add that we have launched 'Awkira', a new generation herbicide to help find better solutions to Indian farmers for resistant weeds. The process of closing of Isagro acquisition is progressing as planned and consummation is expected to be completed in Q3 FY20. This will add to additional manufacturing capacities to meet growing demand of global customers and strengthen our position in Indian market by leveraging complementary product portfolio and distribution channel. Investments in strengthening expertise in new chemistries and technologies is a key pursuit for us and we are progressing well on newer products at our R&D scale," he added.
Meanwhile, the S&P BSE Sensex was down 60 points or 0.15% to 38,998.68.
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On the BSE, 17,019 shares were traded in the counter so far compared with average daily volumes of 28,515 shares in the past two weeks. The stock hit an intraday high of Rs 1,427.65, which is also an all-time record high for the counter. It hit an intraday low of Rs 1,375. The stock hit a 52-week low of Rs 700 on 26 October 2018.
P I Industries is engaged in the manufacturing and distribution of agro chemicals. Its geographical segments include sales within India and abroad. The firm manufactures agrochemicals, plant nutrients and plant protection, specialty fertilizers and hybrid seeds.
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