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PI Industries drops on profit booking

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Capital Market
Last Updated : Aug 07 2013 | 12:00 AM IST

PI Industries lost 2.51% to Rs 136.10 at 12:34 IST on BSE, with the stock sliding on profit taking after Monday's 14.23% rally triggered by the company reporting strong Q1 results.

Meanwhile, the S&P BSE Sensex was down 262.77 points or 1.37% at 18,919.49.

On BSE, 4,244 shares were traded in the counter as against average daily volume of 19,559 shares in the past one quarter.

The stock hit a high of Rs 140.10 and a low of Rs 135 so far during the day. The stock had hit a 52-week low of Rs 95.20 on 30 October 2012. The stock hit a record high of Rs 148.90 on 16 April 2013.

The stock had outperformed the market over the past one month till 5 August 2013, rising 3.83% compared with the Sensex's 1.61% fall. The scrip had also outperformed the market in past one quarter, advancing 2.38% as against Sensex's 2.01% fall.

The small-cap company has equity capital of Rs 13.55 crore. Face value per share is Re 1.

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Shares of PI Industries had rallied 14.23% to settle at Rs 139.60 on Monday, 5 August 2013, after the company on Saturday, 3 August 2013, reported strong Q1 earnings.

PI Industries' net profit jumped 106.9% to Rs 48.54 crore on 69.8% growth in net sales to Rs 405.63 crore in Q1 June 2013 over Q1 June 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) surged 60% year on year to Rs 78.90 crore in Q1 June 2013, on account of maintaining healthy product mix and sustaining revenue quality at substantially increased revenue scale.

PI Industries said that contributions from both the domestic Agri Input and custom synthesis exports to the revenue showed remarkable enhancement during the quarter. Revenue growth is mainly driven by volume growth. In the domestic market, PI's differentiated model demonstrated its ability to maximize the benefit from a conducive monsoon where sowing was higher in key cropping areas for the Kharif season, the company said. Custom synthesis exports reflect the uniqueness and advantages of its IPR allied model, resulting in sustained revenue momentum and deep engagement style that has potential to scale-up in a consistent manner. Stabilization of the Jambusar facility has also helped revenue scale up at an attractive pace, PI Industries said in a statement.

On future business outlook, PI Industries said that while the trend for the first quarter is exceptionally strong and ahead of sector performance the outlook for the year will be influenced by the sector dynamics on an overall basis. Onset of timely and well-spread monsoon, increased crop acreages, nearly full water reservoirs and remunerative MSPs indicate positive outlook for remaining crop seasons for the current fiscal, the company said. PI with its excellent product portfolio and superior operating model is well-placed to give predictable upsides on account of volume growth across existing and newly launched products, it added. Custom synthesis exports are being driven by scale and execution capabilities. It is expected to sustain increased revenue levels in line with growing global demand of existing and newly commercialized products. The business is expected to deliver free cash flows going forward leading to diminution in the quantum of debt, PI Industries said in a statement.

PI Industries focuses on Agri-Input and Custom Synthesis. PI Industries currently operates three formulation and two manufacturing facilities as well as four multi-product plants under its three manufacturing locations across Jammu and Gujarat.

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First Published: Aug 06 2013 | 12:34 PM IST

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