The agrochemicals company posted a 30 per cent year on year (YoY) jump in net profit at Rs 123 crore, on the back of strong revenue growth during Q2FY20. It had clocked a profit of Rs 94 crore in the year ago quarter.
Revenue in the recently concluded quarter rose 25 per cent YoY on the back of a strong 52 per cent improvement in exports, more than making up for the adverse trends in the domestic market. EBITDA (earnings before interest, tax, depreciation and amortization) margin expanded 250 bps at 21.2 per cent during the quarter.
“The new products commercialised in last few years are showing continued momentum with future enquires indicating a healthy trend. Erratic/delayed advent of monsoon and higher trade inventory dampened domestic demand resulting in a decline of 12 per cent in domestic revenue,” PI Industries said in a statement.
Margins have been maintained despite softness in domestic market and ramp-up cost in new manufacturing facilities, it added.
Furthermore, the outlook for October-March (H2FY20) continues to be healthy on account of sustained introduction of high-potential brands targeting a variety of crops and regions. The expected good Rabi showing improved traction in-line with planned development initiatives and sustained growth in exports given higher requirement for commercialized molecules. The progressive commissioning of additional capacities will help towards enhancing the delivery run rates, the management said.
It further added that the process of closing of Isagro acquisition is progressing as planned and consummation is expected to be completed in Q3FY20.
"This will add to additional manufacturing capacities to meet growing demand of global customers and strengthen the company’s position in Indian market by leveraging complementary product portfolio and distribution channel," the company said.
Thus far in the calendar year 2019, PI Industries has outperformed the market by surging 69 per cent, as compared to an 8 per cent rise in the S&P BSE Sensex.
The trading volumes on the counter jumped three-fold with a combined 427,941 shares changed hands on the NSE and BSE till 12:56 pm.