PI Industries Q2 Results: Profit Up 6%, Beats Estimates
PI Industries' revenue rose 4.9% to Rs 2,221 crore in the second quarter.
PI Industries Ltd.'s consolidated net profit rose 6% in the second quarter of the financial year, beating analysts' estimates.
The agri-sciences company posted a profit of Rs 508.2 crore in the quarter ended September in comparison to Rs 480.5 crore in the year-ago period, according to an exchange filing on Wednesday. Analysts tracked by Bloomberg had estimated a profit of Rs 474 crore.
The company achieved an overall revenue growth of 5% year-on-year. Agchem exports grew by approximately 10%, primarily due to increased volumes and the introduction of new products, new products saw a strong year-on-year growth of 42%. However, domestic revenues declined by about 5% year-on-year due to reduced supply to institutional customers, though revenue from branded products rose by 7%, driven by a 12% increase in volume despite a 5% decrease in price. Biologicals products showed strong performance, with revenue increasing by 18% year-on-year.
In the pharma segment, exports contributed Rs 41.1 crore, making up around 2% of total exports revenue. The gross margin improved to 52%, marking an increase of approximately 519 basis points year-on-year, supported by a favorable product mix and operational efficiencies. Overhead costs increased due to the scale-up of exports and promotional expenses related to new product launches (up by roughly 14%) and expansion in the Pharma segment (up by about 6%).
Cash flow from operating activities was Rs 186.1 crore, down from Rs 366.9 crore in Q2FY24. Net profit improved by 6% year-on-year, mainly due to EBITDA growth, although the effective tax rate (ETR) increased from 6.2% to 23.3%.
PI Industries Q2 FY25 Highlights (Consolidated, YoY)
Revenue up 4.9% to Rs 2,221 crore versus Rs 2,116.9 crore (Estimate Rs 2,297 crore).
Ebitda up 14% to Rs 628.20 crore versus Rs 551.40 crore (Estimate Rs 638 crore).
Margin expands 230 basis points to 28.3% versus 26% (Estimate 27.8%).
Net profit up 6% to Rs 508.20 crore versus Rs 480.5 crore (Estimate Rs 474 crore).
Shares of PI Industries closed 2.26% lower at Rs 2.26 apiece on the NSE, compared to a 1.36% decline in the benchmark Nifty.
