Don’t miss the latest developments in business and finance.

PI Industries spurts on strong Q1 earnings

Image
Capital Market
Last Updated : Aug 05 2013 | 12:55 PM IST

PI Industries spurted 11.09% to Rs 135.75 at 11:43 IST on BSE after net profit jumped 107% to Rs 48.54 crore on 69.8% growth in total income from operations to Rs 406.07 crore in Q1 June 2013 over Q1 June 2012.

The Q1 result was announced on Saturday, 3 August 2013.

Meanwhile, the S&P BSE Sensex was up 84.50 points or 0.44% at 19,248.52.

On BSE, 23,357 shares were traded in the counter as against average daily volume of 18,997 shares in the past one quarter.

The stock surged as much as 16.48% at the day's high of Rs 142.35 so far during the day. The stock hit a low of Rs 129.20 so far during the day. The stock hit a record high of Rs 148.90 on 16 April 2013. The stock had hit a 52-week low of Rs 95.20 on 30 October 2012.

The stock underperformed the market over the past one month till 2 August 2013, sliding 6.72% compared with the Sensex's 1.54% fall. The scrip had also underperformed the market in past one quarter, declining 7.74% as against Sensex's 2.9% slide.

More From This Section

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

PI Industries' 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, P I Industries said in a statement.

Commenting on the performance Mr. Mayank Singhal, Managing Director & CEO, PI Industries said, "We are witnessing a strong growth momentum in both domestic and export segments due to inherent strength of our differentiated business model and quality of our operations. Our domestic agri input revenues grew by approximately 38% YoY mainly due to strong volume improvement driven by favourable onset of monsoon, handsome increase in sowing/acreages of major crops, proactive marketing strategies, excellent field-work amongst the farming community and the growing popularity of our brands. Our niche in this space lies in establishing a portfolio of excellent products to enhance productivity of Indian farmers backed by a nationwide distribution platform and following best-in-class industry practices. Custom Synthesis Exports is a model prepped for long-term, upsides where scale-up of some of the existing products have driven the growth for the quarter to approximately 116% YoY. The Jambusar facility offers a well-timed addition to capacity as volume growth is kicking in. The scale up in production has matched our earlier expectations and we are now operating at high utilisation levels. Our consistent performances lend proof that PI is well positioned to deliver the upsides that the agrochemicals industry will see as it gears up to fulfill demand from growing populations worldwide. The outlook for FY2014 is robust backed by incremental volume sales from both existing and newly launched molecules and complemented by visibility of assured scale-up in custom synthesis exports".

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. P I 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, P I 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.

Powered by Capital Market - Live News

Also Read

First Published: Aug 05 2013 | 11:45 AM IST

Next Story