PI Industries gained 1.33% to Rs 3075 after the company reported 58% jump in consolidated net profit to Rs 351.80 crore on 18.9% rise in revenue to Rs 1613.20 crore in Q3 FY23 over Q3 FY22.
The growth in net profit was supported by EBITDA growth despite higher depreciation. EBITDA grew 40% YoY to Rs 415.6 crore during the quarter ended December 2022.EBITDA margin improved by 388 basis points to 26% in Q3 FY23, mainly on account of favorable product mix and operating leverage.
The company recorded 23% growth in exports led by volume growth of 9% and 14% coming from price, currency and favourable product mix. Domestic business registered 2% YoY growth, impacted by adverse weather condition coupled with higher channel inventory.
Overheads increased by 4% to Rs 345.6 crore in Q3 FY23 from Rs 333.1 crore in Q3 FY22. Gross margin improved by 73 basis points to 47% during the quarter.
During 9M FY23, the company's consolidated net profit jumped 48.4% to Rs 949 crore on 26.2% increase in net sales to Rs 4,926.40 crore over 9M FY22.
Operating profit before working capital changes was Rs 1,218.5 crore in 9M FY23 as against Rs 886.5 crore in 9MFY22.
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The company's total capex for 9M FY23 was Rs 258.5 crore as against Rs 228 crore in 9M FY22.
The company's inventory levels reduced in terms of days of sales to approximately 81 days to Rs 1,451.7 crore, to avert supply chain disruptions and meet customer supply schedules / continued operations.
Trade working capital in terms of 'days of sales' was 90 days in 9M FY23 as compared with 103 days as on 31 March 2022.
Net cashflow from operating activities was Rs 995.1 crore as against Rs 302.2 crore in 9M FY22. Surplus cash net of debt is Rs 2,896.6 crore.
"Focused efforts are continuing to identify and finalise value accretive inorganic growth opportunities in line with company's long-term strategy, the company said in a statement.
Meanwhile, the board of directors declared an interim dividend of Rs 4.5 per equity share for the financial year 2022-23 and the same shall be paid on or before 15 March 2023.
PI Industries operates in the domestic agricultural inputs and custom synthesis manufacturing (CSM) exports segments. It is a leading player in the domestic agricultural inputs sector, primarily dealing in agrochemicals and plant nutrients. In the CSM exports segment, its business interests include dealing in custom synthesis and contract manufacturing of chemicals, which constitutes techno-commercial evaluation of chemical processes, process development, lab and pilot scale-up, as well as commercial production.
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