PI Industries (PIIND) Q2 24/25 earnings summary

Executive summary

• Achieved 5% YoY revenue growth in Q2 FY25 and 7% in H1 FY25, driven by strong export performance, new product launches, and robust biologicals growth.

• Completed acquisition of Plant Health Care, enhancing the biologicals platform and expanding global reach.

• Pharma business faced temporary headwinds due to customer inventory and one-off events, but volume recovery is expected in H2.

• Commercialized 8 new products in H1 FY25 across exports and domestic agri brands.

Financial highlights

• Q2 FY25 consolidated revenue grew to INR 22,210 million (up 5% YoY); H1 FY25 revenue reached INR 42,899 million (up 7% YoY).

• Gross margin expanded to 52% (up 519 bps YoY); EBITDA margin at 28% in Q2; PAT up 6% YoY to INR 5,082 million in Q2 and up 11% YoY to INR 9,570 million in H1.

• Operating cash flow for H1 FY25 up 20% to INR 8,006 million.

• Net worth at INR 95,454 million; net cash balance at INR 39,227 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 destocking and cautious procurement.

• Domestic branded business expected to grow in double digits in H2, supported by new launches and favorable Rabi season.

• Export growth for H2 expected at high single digits; full-year blended growth to be high single-digit.

• Pharma CDMO segment expects recovery in H2 FY25 as inventory normalizes and new projects ramp up.