PI Industries (PIIND) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw consolidated revenue growth, with strong Agchem export performance and new product launches, despite challenging global agri input conditions and delayed monsoons.

• Biologicals revenue grew 39% year-over-year; two new molecules commercialized in Q1, with 6-7 more targeted for the fiscal year.

• Acquisition of Plant Health Care Plc announced to expand biologicals and peptide technology platform, expected to close by end of Q2 FY25.

• Strategic progress in pharma CRDMO with new research facilities and leadership additions; Hyderabad R&D facility operationalized.

• Standalone and consolidated unaudited financial results for Q1 FY25 reviewed and approved by the Board on August 6, 2024.

Financial highlights

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

• Gross margin improved to 52%; EBITDA margin at 28%; EBITDA: ₹5,853 million, up 24% year-over-year.

• Cash flow from operating activities increased 103% to ₹6,145 million; free cash flow up 62% to ₹5,067 million.

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

• 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 of 25%-26%.

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

• Gross margin guidance at 50%-51% due to expected product mix variability.

• EPS for FY25 expected at 22%-23% due to tax changes.

• Plant Health Care acquisition expected to close by end of Q2 FY25; no impact on current quarter results.