PI Industries posts Q1FY23 results
News: PI Industries reported topline growth of 29.3% YoY to Rs1543.2 crore against our estimates of Rs1389.3 crore, led by stellar performance from CSM (Exports) segment. The revenue from CSM was increased 42% YoY to Rs1142.1 crore. Overall growth in CSM (Exports) was driven by volume growth of ~30% and favourable price and currency growth of ~12%. The revenue from domestic formulation was up by 4% YoY to Rs401.1 crore. OPM expanded by 150bps YoY to 22.4%, which led EBITDA growth of 39% YoY to Rs345.6 crore against our estimates of Rs309.8 crore. PAT was up by 40% YoY to Rs262.4 crore against our estimates of Rs212.5 crore on the back of strong operational growth.
View: The company has order backlog to the tune of $1.5 billion, providing a revenue visibility of next 3-4 years. We expect this should aid high teens growth for CSM. Further, better growth from Isagro along with venturing into pharma through QIP proceeds would translate into higher growth visibility ahead. We expect this should be margin and return ratios accretive, thereby can assist better valuation in medium to long run.