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Motilal Oswal Report
PI Industries Ltd. reported strong performance, led by growth in the Domestic business (up 76% YoY); growth was further aided by 23% revenue growth in custom synthesis and manufacturing (CSM).
Operating leverage led to Ebitda margin expansion, partially offset by lower gross margins, weighed by higher share of Isagro Agrochemicals Private Ltd. and product mix changes.
Revenue was up 41% YoY (including Isagro’s performance, which was absent in the base quarter) to Rs 10.6 billion (estimate Rs 9.2 billion).
Ebitda was up 50% YoY to Rs 2.3 billion (estimate Rs 1.9 billion); Ebitda margins expanded 140 basis point YoY to 21.6% (estimate 20.2%), supported by operating leverage.
The gross margin contracted 280 basis point to 42% due to Isagro’s contribution to sales and a change in the product mix.
Adjusted profit after tax grew 43% YoY to Rs 1,455 million (estimate Rs 1,133 million); PAT growth was restricted, weighed by an increase in depreciation (up 45% YoY), increase in interest cost (up 4.2 times YoY), and lower other income (down 32% YoY).
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