PI Inds spurts on robust Q1 performance

PI Industries rose 4.20% to Rs 1,908.40 after consolidated net profit jumped 43.2% to Rs 145.50 crore on 40.60% rise in net sales to Rs 1,060.10 crore in Q1 June 2020 over Q1 June 2019.

Profit before tax (PBT) jumped 43% to Rs 189.90 crore in Q1 June 2020 as against Rs 132.80 crore in Q1 June 2019. Current tax expense for the quarter rose 5.4% at Rs 27.50 crore as against Rs 26.10 crore paid in Q1 June 2019. The Q1 result was announced after trading hours yesterday, 4 August 2020.

EBITDA surged 55% to Rs 236 crore in Q1 FY21 as against Rs 153 crore in Q1 FY20. EBITDA margin improved to 22% in Q1 FY21 as compared to 20% in Q1 FY20.

Exports sales grew 23% to Rs 614 crore in Q1 June 2020 as against Rs 501 crore in Q1 June 2019 driven mainly by proactive raw material inventory management and capacity planning. Demand for key commercialised molecules remained strong. Shipments have also gained momentum.

Domestic sales surged 76% to Rs 446 crore in Q1 FY21 as compared to Rs 253 crore in Q1 FY20 contributed by carryover demand from Q4 FY2020, Isagro brand sales and robust momentum in the domestic segment on planned brand positioning to avail advantage of early sowing.

Both domestic and export supplies have picked up pace with all manufacturing facilities being operational and capacity utilisation is building back to pre-COVID levels.

Free cashflow generations worth Rs 298 crore (which is 7% of revenue) was through better working capital management. Increase in operating cash flow helping fund continue strategic initiatives. Net working capital to sales improved to 4.95 from 3.68 as at June 2020 despite COVID-19 disruption and resultant liquidity challenges in the markets. Increased inventory levels to securitize continuity of operations amid COVID-19 uncertainties. PI Industries moved back to surplus cash position with cash available (net of debt) aggregating to Rs 98 crore on 30 June 2020.

Commenting on the Q1 performance, Mayank Singhal, the vice chairman and managing director (MD) of PI Industries, has said that: ''I am glad that we have received an overwhelming response from the investor community, especially in the midst of ongoing disruptions posed by the pandemic. This showcases investors' trust in growth-oriented approach of PI Industries."

The company has raised to Rs 2,000 crore in July 2020 through Quatified Institutional Placement (QIP) of equity shares. The company issued 1,36,05,442 equity shares at Rs 1,470 per equity share.

PI Industries manufactures agricultural and fine chemicals, and polymers. The company produces fine chemicals, crop protection, plant nutrients, and seeds, and engineering plastics for use in the automobile, electrical, and home appliances industries.

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