PI Industries Ltd Reports 46% Net Profit Growth YoY for Q2 FY23

PI Industries Limited., a Indian agrochemicals manufacturer announced its results for the second quarter ended Sept 30, 2022.

Q2 Results- QoQ

The company’s net profit grew 27.6% to Rs 3.34 billion for the period ended Sept 30, 2022 as against net profit of Rs 2.62 billion for the previous quarter.

Net sales decreased 14.7% to Rs 18.01 billion during the period ended Sept 30, 2022 as compared to Rs 15.71 billion during the previous quarter.

Q2 Results- YoY

The company reported 46% growth in net profit of Rs 3.34 billion for the period ended Sept 30, 2022 as against net profit of Rs 2.29 billion for the prior-year quarter.

Net sales increased 30.4% to Rs 18.01 billion during the period ended Sept 30, 2022 as compared to Rs 13.81 billion during the prior-year quarter.

The company said in a statement that exports grew 29% on a higher base led by volume growth of ~25%, favorable price and currency of ~4%.

Domestic growth of 36% was mainly driven by volume growth of ~31% and price increase of ~5%. Newly launched brands contributed to significant revenue growth, it added.

Trend of rising input costs and passthrough continued both in Exports and Domestic during Q2

▪ EBITDA margin improved on account of favorable product mix and operating leverage

▪ 46% increase in net profit attributable to EBITDA growth and despite higher depreciation and ETR

H1 Results- YoY

The company reported 43.3% growth in net profit to Rs 5.97 billion for the period ended Sept 30, 2022 as against net profit of Rs 4.16 billion for the prior-year 1st half period.

Net sales increased 29.5% to Rs 33.72 billion during the period ended Sept 30, 2022 as compared to Rs 26.03 billion during the the 6 months period last year.

Highlights of H1FY23

  • Total capex for H1FY23 is Rs. 1,204 million (H1FY22 Rs. 1,614 million)
    • Actual capex spend is in line with plan
    • Key focus of driving higher capacity utilization by improving throughput
  • Operating profit before working capital changes is Rs. 8,077 million (H1FY22 Rs. 5,642 million)
  • Maintained higher inventory levels of Rs. 16,095 million attributable to higher revenue
    • To avert supply chain disruptions and meet customer supply schedules / continued operations
  • Trade working capital in terms of Days of Sales is 111 days vs. 103 days as on 31-Mar-22
  • Net Cashflow from operating activities is Rs 3,078 million (H1FY22 Rs. 1,822 million)
  • Surplus cash net of debt is Rs. 23,211 million. Focused efforts are continuing to identify and finalise value accretive inorganic growth opportunities in line with Company’s long term strategy.

PI Industries Limited is a leading player in the Indian agrochemical sector engaged in the manufacture and sale of herbicides, insecticides, fungicides and specialty products.