PI Industries spurts after Q2 FY22 PAT spurts 5.5% to Rs 230 cr

PI Industries advanced 4.29% to Rs 2,855.50 after the company's consolidated net profit gained 5.5% to Rs 229.60 crore on a 17% jump in net sales to Rs 1,354.20 crore in Q2 September 2021 over Q2 September 2020.

The 17% Y-o-Y revenue growth primarily driven by - a) 24% growth in exports contributed by strong volume growth in key products and b) domestic business growth remained flat on account of global supply chain disruptions impacting imports, adverse weather events in certain herbicide geographies, etc.

On a consolidated basis, EBITDA rose 4% to Rs 292 crore in Q2 FY22 from Rs 280 crore in Q2 FY21. The 4% increase in EBITDA reflects rising input cost. EBITDA margin stood at 22% in Q2 FY22 as against 24% in Q2 FY21.

Gross margin improved to 45% in Q2 September 2021 as against 44% in Q2 September 2020. Gross margin remained almost unchanged despite sharp increase in input costs and curtailed export incentives by 1.5%, mainly on account of favourable product mix. Price correction was being done to maintain gross margin.

Overheads rose 38% to Rs 318 crore in Q2 FY22 as compared to Rs 231 crore in Q2 FY21. Overheads increasing by 38% was mainly attributable to sharp increase in fuel and related utilities, one-time expenses pertaining to several strategic initiatives and other COVID-19 management costs.

PI Industries manufactures agricultural and fine chemicals, and polymers.

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