PI Industries Q4 Results 2022: reported PAT at Rs.2044 crore, rise of 14%

On 17th May 2022,  PI Industries announced its quarterly results for the last quarter of FY2022.

Key Highlights:

Q4FY22:

- PI Industries reported a net profit at Rs.2044 crore for Q4FY22 from Rs.1798 in Q4FY21, with a growth of 14%

- The company's revenue from operations rose 17% to Rs.13952 crore in the quarter under review from Rs.11971 crore in the same quarter last fiscal.

- EBITDA stood at Rs.3056 Crore from Rs.2273 in Q4FY21, saw a growth of 34%

FY2022:

- The company reported a net profit at Rs.8438 crore for FY2022 from Rs.7383 in FY2021, with a growth of 14%

- The company's revenue from operations rose by 16% to Rs.52995 crore for the year from Rs.45770 crore in FY2022.

- EBITDA stood at Rs.11460 Crore from Rs.10166 in FY2021, seeing a growth of 13%

Other Highlights:

- The trend of rising input costs continued, cost passthrough affected both in CSM exports and Domestic during Q3 and Q4 FY22 

- For FY2022, Domestic revenue was impacted by unfavorable agro-climatic conditions in the Kharif season

- Revenue growth of 16% driven by price increase of ~3% and balance from volume growth Rising Input costs, lower export incentives, etc. offset by favorable product mix and price hike led to higher gross margin. 

- Operating Expenses saw an increase of 24% due to a sharp increase in fuel prices leading to an increase in utility cost, one-time expenses pertaining to strategic initiatives, Covid19 related expenses, etc. 

- PI Industries maintained higher inventory levels of Rs.14,234 million to avert supply chain disruptions and meet customer supply schedules / continued operations

Future Prospects for FY23:

Domestic: 

- Strong demand is expected for insecticides, fungicides, herbicides, and bio-nutrients on the back of normal monsoon predictions 

- Commodity prices remain robust owing to global demand 

- 5 new products are scheduled to be launched in FY23

CSM Export:

- Continued scale-up in demand of some of the existing products 

- Commercialization of 7 new molecules planned in FY23 

- Momentum in new enquiries and conversion to continue 

- Drive higher capital efficiency in FY23 with a focused program to reduce Trade Working Capital

Other:

- 2 new process innovations to be commercialized in FY23 

- Evaluation of inorganic growth opportunities in pharma continues, with both domestic and international options being evaluated

- Discussions continue with global innovators for the development partnership of 2 promising leads; one novel fungicide and a novel broad-spectrum insecticide having the sizable potential market opportunity 

The board has proposed a final dividend for FY21-22 of Rs.3 per share aggregating to a total dividend for FY21-22 of Rs.6 per share.