PI Industries (PIIND) Q2 24/25 earnings summary

Executive summary

• Achieved strong Q2 and H1 FY25 results with consolidated revenue up 5% YoY in Q2 to INR 22,210 million and 7% in H1 to INR 42,899 million, driven by robust exports and new product launches despite challenging global and domestic crop protection markets.

• New product launches, a robust biologicals portfolio, and the strategic acquisition of Plant Health Care Plc significantly contributed to growth and margin improvement, expanding the global market reach.

• Pharma business faced temporary softness due to customer inventory and a client bankruptcy, with volume recovery expected in H2; the segment reported a loss before tax of INR 1,268 million in H1.

Financial highlights

• Q2 FY25 consolidated revenue grew 5% YoY to INR 22,210 million; H1 revenue up 7% YoY to INR 42,899 million; three-year Q2 CAGR at 18%.

• Gross margin expanded to 52% in Q2 and H1; EBITDA margin at 28% for Q2 and H1; PAT up 6% YoY to INR 5,082 million in Q2 and 11% to INR 9,570 million in H1.

• Operating cash flow up 20% YoY to INR 8,006 million in H1; net cash balance at INR 39,227 million.

• Net worth at INR 95,454 million as of September 30, 2024.

Outlook and guidance

• FY25 revenue growth guidance revised to high single-digit or early double-digit, reflecting global industry headwinds and inventory rationalization.

• Domestic branded business expected to see double-digit growth in H2, while export growth to be in high single digits; pharma CDMO segment expects recovery in H2 as inventory normalizes.

• Margins of 26%-27% considered sustainable for core business.