- 09 Nov 2022
- ICICIdirect Research
PI REPORTS STELLAR PERFORMANCE IN Q2FY23
PIIND - 4095 Change: 29.70 (0.73 %)News:
PI Industries reported topline growth of 30.7% YoY to Rs 1770 crore against our estimates of Rs 1597.5 crore, led by stellar performance from CSM (exports) segment. We believe overall growth was mainly led by volume scale up and price hike while favourable product mix and currencies would also have contributed to growth. Gross margin increased marginally by 20 bps YoY (up 137 bps QoQ). EBITDA margin was up 284 bps YoY (up 157 bps QoQ) to 24.4% (vs. I-direct estimate of 22.2%) led by better operating leverage. Finally, PAT came in at ~Rs 334.8 crore, up 46% YoY (vs. I-direct estimate: Rs 271.7 crore) tracking higher topline growth
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We believe traction in new inquiries in CSM exports coming from non-agri chemical space along with volume growth in existing CSM products and launched on new molecule must have boosted topline growth in Q2FY23. We believe the management’s guidance on delivering 20% plus revenue growth in FY23 with continued improvement in margins and returns is likely achievable. Further, capex of Rs 500 crore in FY23 has been guided by the management in previous conference call will aid topline growth in future
Impact:
Positive