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News: Revenues grew 8% YoY to ₹ 2069 crore driven by 14% growth in agrochemicals exports (CSM) to ₹ 1724 crore. Domestic agrochemicals on the other hand were subdued an de-grew 8% YoY to ₹ 320 crore. Pharma CRDMO sales stood at ₹ 25.3 crore, a de-growth of 42%. EBITDA grew ~26% YoY to ₹ 587 crore and margins stood at ~28.4% (~390 bps improvement) driven by 530 bps improvement in GPM to 51.8%, attributable to better product mix. PAT grew 17% YoY to ₹ 449 crore.
Views: While CSM exports growth was driven by volume growth and newly commercialised products, the domestic de-growth was attributable to delayed and erratic spread of monsoon. Pharma CRDMO declined due to supply deferment of a few products. The proposed acquisition of UK based Plant Health Care Plc (PHC), which possess industry-leading knowledge, products, IP and experience in protein/ peptide technology in the agricultural biological space, the company intends to further strengthen the CSM franchisee. PI remains a standout performer among other Indian Agrochem players in tough times due to strong and sustainable CSM performance.
Impact: Positive