PI Industries: Q4FY14 Result Analysis

The results for PI Industries for the quarter ended March 31, 2014 has been an impressive one. For the quarter, the topline of the company has grown by 10% on yearly basis to stand at Rs 362.7 crore. The EBITDA for the same period grew by 26% on YoY basis to stand at Rs 51.9 crore. The bottomline almost doubled to Rs 45.2 crore posting a growth of 96% on YoY basis for Q4FY14. The management attributes this growth to the domestic operations and exports which have performed as per plan where growth remains anchored by robust visibility.

On the yearly front too  the performance have remained  robust. The topline and the bottomline of the company has grown by 39% and 91%  on YoY basis to stand at Rs 1594 crore and Rs 183.7 crore  respectively. It has delivered around 19% growth in domestic revenues during the year which is in  line with healthy volume improvement backed by pricing gains  in key products. An optimal product mix and focused branding has contributed to this performance. The favourable agro-climatic conditions during  the last Kharif season combined with better acreages in both cropping seasons also  provided a boost to  growth. The full year saw Custom Synthesis exports giving a  56% enhancement on  a larger base as commercialised molecules ramped-up as  expected, in keeping  with global demand for those molecules. FY14 overall saw  commercialisation of 3 new molecules and this trend is likely to be maintained over  the next year as  well.

Talking about the way  forward, in its release the company  has mentioned two points which are:

• Initial trends for Kharif season are encouraging where efforts are underway to introduce at least one new product in the domestic market to build on momentum from existing products
• High growth potential of the existing and pipeline products of custom synthesis exports are giving clear visibility of performance. This will be complemented by robust delivery from the Jambusar operations, where capacities will get adequately augmented in the coming quarters

The company has also recommended a dividend of Re 1 for FY14. The total dividend paid by the company during FY14 is Rs 2.