PI Industries (PIIND) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue grew 8% year-over-year, driven by strong Agchem exports, new product launches, and robust biologicals growth of 39% year-over-year.

• Two new molecules commercialized in Q1, with 6-10 more targeted for FY25; R&D pipeline expanding and diversification into non-Agchem segments ongoing.

• Acquisition of Plant Health Care Plc announced to enhance biologicals portfolio and global reach, expected to close by Q2 FY25.

• Hyderabad R&D facility operationalized; GMP Kilolab in Lodi nearing completion.

• Financials prepared in accordance with Ind AS and SEBI Listing Regulations; Board reviewed and approved results on August 6, 2024.

Financial highlights

• Q1 FY25 consolidated revenue was ₹20,689 million, up from ₹19,104 million in Q1 FY24; net profit was ₹4,488 million, up from ₹3,829 million.

• Gross margin improved to 52%, EBITDA margin reached 28%, and cash flow from operations rose 103% to ₹6,145 million.

• Working capital days reduced to 55 from 83 year-over-year; inventory days down to 50 from 73.

• ROCE improved to 37.1%; debt/equity ratio remains low at 0.01.

• Basic and diluted EPS (consolidated) for Q1 FY25 were ₹29.59, up from ₹25.24 in Q1 FY24.

Outlook and guidance

• Maintains full-year revenue growth guidance of 15%-20% and EBITDA margin guidance of 25%-26%.

• Aggressive commercialization of 8-10 new products in FY25; capacity expansion on track.

• Gross margin guidance remains at 50%-51%, with quarterly variations expected due to product mix.

• Tax rate for FY25 expected at 22%-23% due to SEZ tax exemption changes.

• Plant Health Care acquisition expected to close by end of Q2 FY25.