PI Industries stock up 6% on earnings beating Street estimates, 23% growth in exports

Agrochemical company PI Industries has reported a strong Q3FY23, beating street estimates and driving a surge in its stock price. Its stock went up by more than 6 percent on February 16 at 10.30 am to trade at around Rs 3,329.

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The company’s consolidated net profit for the quarter stood at Rs 352 crore, up 58 percent YoY, due to an increase in operating profit resulting from a favourable product mix and operating leverage. Consolidated Ebitda (earnings before interest, taxes, depreciation and amortisation) stood at Rs 416 crore, up 40 percent YoY, while consolidated revenue from operations was Rs 1,613 crore, up 19 percent year-on-year (YoY).

The strong performance was driven by a 23 percent YoY growth in exports, fuelled by a 9 percent volume growth, 14 percent from price increases, favourable currency movement, and a favourable product mix. However, the firm’s domestic growth was subdued at 2 percent YoY due to adverse weather conditions and higher channel inventory.

In a press release, the company highlighted a surge in new inquiries, with 25 percent coming from non-agrochem sectors.

PI Industries also commercialised three new products in exports and seven new products in the domestic market. Notably, more than 20 percent of the company’s revenue came from newly-launched agri brands.

On February 14, the company’s board declared an interim dividend of Rs 4.5 per share, which is 450 percent over the face value of the share at Rs 1. The record date to determine eligibility for the interim dividend has been fixed as February 24.

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In another exchange filing on the same day, PI Industries confirmed that there was no deviation in the funds raised through the qualified institutional placement (QIP). It had raised Rs 1,975 crore in July 2020 and the recent exchange filing indicated that Rs 67 crore from that corpus had been utilised for the quarter ended December.

Overall, the company’s Q3FY23 performance has been strong, driven by export growth and successful product launches.