PI Industries Q4 Review - Temporary Blip, But Story Intact: Motilal Oswal
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Motilal Oswal Report
PI Industries Ltd. reported worse-than-expected numbers in Q4 FY21 due to lower gross margin, impacted temporarily by:
Product mix changes,
Consolidation of Isagro, which is relatively lower margin,
Merchandise exports from India scheme impact, and
Ramping up of new plants which impacted yields.
Reported revenue was up 40% YoY to Rs 12 billion (our estimate: Rs 11.9 billion) in Q4 FY21.
Exports/custom synthesis manufacturing revenue increased 47% YoY (to Rs 10 billion) in Q3 FY21, led by strong volume growth in key products.
The order book stood ~$1.5 billion (flat QoQ), which provides higher visibility for sustainable growth over the next three to four years.
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