PI Industries Q2FY25 Out, Profit Jumps 6%, Margins Hit New Highs

PI Industries reported a 6% year-on-year (YoY) rise in consolidated net profit for Q2FY25, reaching Rs.508.2 crore, up from Rs.480.5 crore in the same quarter last year. Revenue from operations grew 4.9% YoY to Rs.2,221 crore, compared to Rs.2,116.9 crore in Q2FY24. Despite the growth, revenue missed the analysts’ estimate of Rs.2,297 crore. PI Industries’ shares closed at Rs.4,487.20, down 1.28% on the BSE after results were announced post-market hours.

Financial Metrics

EBITDA grew by 13.9% YoY to Rs.628.2 crore, up from Rs.551.4 crore in Q2 FY24, with the EBITDA margin expanding to 28.3% compared to 26.1% a year earlier. The improvement in margins was attributed to a better product mix and operational efficiencies. Gross Margin improved to 52%, an increase of 519 basis points YoY whereas Operating cash flow decreased to Rs.186.1 crore, compared to Rs.366.9 crore in Q2 FY24, due to promotional and expansion related expenses.

Business Highlights

• Exports: Agchem exports rose 10% YoY, driven by higher volumes and a 42% YoY growth in new products.
• Domestic Operations: Domestic revenue declined 5% YoY, largely due to reduced supply to institutional clients. However, branded products grew 7% YoY, supported by a 12% volume increase, despite a 5% drop in price.
• Biologicals Segment: Showed growth with an 18% YoY rise in revenue.
• Pharma Exports: Contributed Rs.41.1 crore, making up about 2% of total exports revenue.

Conclusion: PI Industries delivered modest growth in Q2FY25, driven by export strength and operational improvements. However, challenges in domestic revenue and rising expenses bring out areas to monitor as the company continues to expand its portfolio globally. Earlier this year, PI Industries acquired Plant Health Care Plc for approximately £32.8 million. 

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