PI Industries Q1 Results Review - Higher Pharma Loss Dents CSM Beat: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.PI Industries Ltd.’s Q1 FY25 consolidated revenue at Rs 20.69 billion was a miss of 6.4% versus our estimate. Agrochem revenue at Rs 6.38 billion was a miss of 5.1%. CSM export revenue at Rs 17.24 billion (as per our calculation from PPT) was a miss of 1.1%. Pharma business revenue at Rs 253 million was a miss of 54.3%. Agrochem Ebit (our reconciliation) at Rs 5.59 billion was a beat of 4%. Agrochem Ebitda (our reconciliation) at Rs 6.34 billion beat our estimate by 5%.YoY Analysis: Revenue was up 8.3% YoY. Revenue, excluding Pharma, was up 9.5% YoY on a like-to-like basis. Custom synthesis manufacturing Exports revenue was up 13.5% YoY whereas CPC Domestic business revenue was down by 8.0% YoY. Gross margin at 51.8% expanded by 526bps and Ebitda margin at 28.2% expanded by 370 bps. Ebitda increased by 24.7% YoY.Segment Ebit (our reconciliation): Agrochem Ebit was up 35% YoY; Pharma Ebit loss increased to Rs 594 million from Rs 152 million in Q1 FY24. However, Pharma Ebit loss came in above our loss estimate of Rs 264 million.Pharma capital employed: Rs 8.44 billion as of June-24 versus Rs 8.97 billion in March-24. Pharma assets decreased by Rs 608 million to Rs 12.68 billion and Liabilities decreased by Rs 72 million to Rs 4.24 billion by the end of June’24 on a QoQ basis. CSM getting traction from new launches and non-agrochem pipeline: PI is aiming at an annual commercialisation of 6-7 CSM molecules in future besides new businesses in Agrochem and Non-agrochem segments (50% of new enquiries). The share of the Non-agrochem segment is set to cross 30% over the next three years from 23-24% in FY24..Click on the attachment to read the full report:.PI Industries Q1 Results: Profit Rises 17%, Beats Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

PI Industries Q1 Results Review - Higher Pharma Loss Dents CSM Beat: Nirmal Bang

The brokerage maintains its Accumulate rating on the company on account of a muted risk-reward and have raised its SOTP-based target price by 19.9% to Rs 4,406.

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PI Industries Q1 Results Review - Higher Pharma Loss Dents CSM Beat: Nirmal Bang

The brokerage maintains its Accumulate rating on the company on account of a muted risk-reward and have raised its SOTP-based target price by 19.9% to Rs 4,406.

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