PI Industries' share price gained more than 1% on Friday adding to its gains of around 15% that the stock has seen since October lows. While concerns around most chemical manufacturers stay elevated pertaining to inventory destocking, demand slowdown in developed countries, rise in China Exports, PI Industries with patented molecules and niche product range remains better placed compared to peers feel analysts. The Q2 performance held testimony as the financial performance of PI Industries remained strong amidst favorable demand momentum while many peers saw pressure on the performance.
PI Industries reported 20% revenues growth with Earnings before interest tax depreciation and amortisation (Ebitda) growing 28% and net profit growth of 44% year on year. The same was driven by 22% growth in Agro chemical Exports driven by volume growth of 21%. Pharma contributed Exports revenue of Rs.
719 million i.e. 6% of total Exports revenue growth. Also Read- TCS buyback: TCS share price in focus as share trades ex-buyback today. Details in five points PI continued to guide revenue growth of 18-20% YoY along with consistent margin improvement primarily driven by strong enquiries in CSM (Custom Synthesis Manufacturing) business and new launches in domestic segment.
Swarnendu Bhushan Co-Head of Research, Prabhudas Lilladher Pvt Ltd. said that Q2 performance remined strong and outlook remains positive. The twin pharma acquisition announced recently (in april’23) are also anticipated to support overall growth going forward said Bhushan.
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