PI Industries tanks after poor Q2 results

PI Industries tumbled 7.52% to Rs 409.65 at 9:53 IST on BSE after net profit fell 11.4% to Rs 49 crore on 7.8% decline in revenue to Rs 426.60 crore in Q2 September 2014 over Q2 September 2013.

The Q2 result was announced after market hours yesterday, 28 October 2014.

Meanwhile, the S&P BSE Sensex was up 160.69 points or 0.6% at 27,041.51.

On BSE, so far 3.01 lakh shares were traded in the counter as against average daily volume of 24,000 shares in the past two weeks.

The stock was volatile. The stock tumbled as much as 15.08% at the day's low of Rs 376.15 so far during the day. The stock lost 4.95% at the day's high of Rs 421 so far during the day.

PI Industries' EBITDA declined 21.1% to Rs 72.60 crore in Q2 September 2014 over Q2 September 2013.

During the quarter, the domestic agri input revenues were lower than plan due to difficult agro-climatic conditions and custom synthesis exports were lower as per plan, PI Industries said in a statement.

PI Industries said that the company's balance sheet continues to strengthen and remains well capitalized for growth initiatives along with sustained improvement in debt levels. Higher inventories as at 30 September 2014 is planned built up to meet increased uptake in coming quarters, the company said in a statement.

With regard to future business outlook, the company said that custom synthesis exports will see strong performance in the second-half with strong order book position. Conditions appear favourable for Rabi as reservoir levels and moisture content in the soil are good given the delayed departure of the South west monsoon, the company said in a statement.

PI Industries focuses on agri-input and custom synthesis. The company currently operates three formulation and two manufacturing facilities as well as five multi-product plants under its three manufacturing locations across Jammu and Gujarat. These state-of-art facilities have integrated process development teams with in-house engineering capabilities.

Powered by Capital Market - Live News