PI Industries: Reports numbers in line with our estimatesPIIND - 3068 Change: 32.20 (1.06 %)
News: PI Industries reported topline growth of 17% YoY to Rs.1354 crore against our estimates of Rs.1348 crore, led by strong growth from CRAMS segment. The revenue from CRAMS was up by 24% YoY to Rs.993 crore, while the revenue from domestic market remained muted to Rs.361 crore (+1% YoY) due to erratic rains and supply side challenges. OPM contracted by 260bps YoY to 21.6% on the back of higher operating cost such as other (+49% YoY) and employee (+22% YoY), which led EBITDA growth of mere 4% YoY to Rs.292 crore against our estimates of Rs.306 crore. PAT was up by 6% YoY to Rs.229.6 crore against our estimates of Rs.233.5 crore.
Views: With order backlog of US$ 1.4 billion in CSM along with commercialising 6 new molecules during this FY under this vertical, it is expected that, CSM can witness high teens growth over the coming four/five years. Moreover, the company also entered into JV with Polymath holding last month to develop bio-synthesis based products across agri inputs and pharma. Development of key molecules under this segment can improve opportunity scale .