Highlights of the Concall by Capital Mkt
Net revenues rose 5% to Rs 446.1 crore for Q2FY'16 on a YoY basis while EBITDA increased 17% to Rs 84.8 crore and PAT jumped 19% to Rs 58.2 crore. For H1FY'16 net revenues were up 11% to Rs 1000.9 crore, EBITDA 22% to Rs 220.6 crore and PAT 21% to Rs 145.5 crore.During Q2 FY16, Revenues showed a growth of 5%. Domestic agri registered a growth of 10% and the Custom synthesis exports performance was flat during the quarter. Domestic agri-inputs saw healthy momentum in PI's branded portfolio of products, which continue to give direction to growth. Custom synthesis exports have shown moderation in momentum during the quarter due to deferred off take schedule of customers, whereas full-year trajectory is expected to be maintained.
The company posted 10% yoy growth in its domestic agrochemical business at a time when the industry faces severe challenges due to deficit monsoon. Company attributes this performance to good traction seen in its key branded products such as Nominee Gold, Osheen, Keefun and Biovita. In the coming years, Osheen can become as big as Nominee Gold. As of now the company sees no threat to Nominee Gold from generic products. Company remains on track to launch 1-2 new specialty molecules in the next few years.H1 FY16 Revenues showed 11% improvement on account of 13% gains in domestic agri-inputs and 10% increase in custom synthesis exports.During Q2 FY16, the EBITDA stood at Rs. 84.8 crore with margins showing enhancement of 200 bps to 19.0%. A favourable line-up of branded products and moderating input prices supported margin growth in domestic agri-inputs. The growing share of custom synthesis exports continues to drive margin expansion. H1 FY16 EBITDA has shown gains of 22% at Rs. 220.6 crore. Margins stood better at 22.0% representing an increase of 190 bps.
Net cash from operating activities continued to be strong with a cash generation of Rs. 197 crore for the first half.
The company intends to steadily expand the leadership portfolio of products by introducing 1-2 new products each year; with an insecticide and growth regulator ready for launch this year
Like Q2FY15, this quarter also saw significant number of orders getting deferred to H2 resulting in flat revenue growth in CSM segment. Based on the local demand environment faced in their respective markets, clients have been deferring deliveryof their orders which has led to delay in revenue recognition for the company. However, the company has not seen any cancellation of orders.Management has indicated that in spite of tough global operating environment faced by global agrochem players, the company has seen 20% rise in enquires in H1FY16 itself.
Order book as of 30th September 2015 stood at $610 million. Company expects to commercialize two new molecules this year taking its total product count to 20.
PI Industries has commenced operations at its second facility at Jambusar SEZ in the last week of September 2015. This facility will be catering to custom synthesis export orders and has capacity of 1000 MT at peak production. The construction at third phase at Jambusar is currently underway and should start commercial production by end of Q3FY16. Capex incurred for these two units is Rs 250-300 crore.
The company aims to achieve high single digit growth in its domestic businesseven as industry is like to post flattish growth. The company is confident of posting 18-20% yoy growth in custom synthesis segment. Improved product mix and lower RM costs should led to 100-150 bps yoy margin expansion in FY16

Co was repr by Laurent Demortier, CEO & MD.Highlights of call by Capital Mkt
Consolidated order backlog as end of Sep 2015 was Rs 8428 crore with order intake for the quarter being Rs 2886 crore.
Order intake in Q2FY16
India Non India CG global
Power Systems 714 1636 2350
Industrial 452 84 536
Total 1166 1720 2886
Order Backlog as end of Sep 2015
India Non India CG global
Power Systems 3145 4607 7752
Industrial 553 123 676
Total 3698 4730 8428
Figures in Rs Crore
The company is in the process of monetizing its investment in non strategic business as well as assets. In this regard on Oct 8, 2015, the BoD have approved divestment of its entire 50% stake (investment of 600000 equity shares of RS 10 each) in medium voltage business i.e. CG Lucy Switchgear (CG-Lucy)to W Lucy & Co of UK for a consideration of Euro 5.50 million. Similarly the company with effect from Aug 12, 2015, has terminated the Distribution Franchisee Agreement (DFA) with MSEDCL for Jalgaon Circle Area.
On Oct 16, 2015, the BoD have also approved entering into definitive agreement for the sale of a portion of its land in Kanjurmarg, Mumbai admeasuring approx 53000 sft for an aggregate sum of Rs 496.48 crore.
International power systems (IPS) business continues to be impacted by ongoing divestment process. The buyer has completed due diligence of of all plants and expects definite offer by end of Dec 2015.
Automation orders backlog as end of Sep 2015 was Rs 831 crore with order intake in Q2FY16 being Rs 441 crore. Revenue from Automation in Q2FY16 was Rs 197 crore, which is flat compared to corresponding previous period.
Proceeds from monetization of non core business/assets will be used to reduce debt at international operations.
Lower EBIT for consumer business in Q2FY16 is largely due to the company accounting an amount of Rs 15 crore towards certain cost heads which was hitherto accounted under unallocated under consumer biz.
Exports revenue in Q2FY16 was Rs 329 crore which is higher compared to Rs 317 crore in Q2FY15 and Rs 133 crore in Q1FY16. Exports order backlog is Rs 883 crore.
Kanjurmarg – Out of 34 acres the company initially sold 8 acres and now has sold another 13 acres. Nothing more will be sold in the next 12-18 months.
Two quarters from now the high rating transformer orders will start contributing to topline and that will improve the India power system margins from FY17 onwards.

I know but in this case one has to delete and re load the ratios. The click and move method made things easy. I was just hoping.

Thanks
Kumar

Hello friends, In try to anslyse stocks , I often come across a metric called EVA( Economic Value added) . I have also seen the same in Pidilite's anural report. Could some provide a writeup on it ? Is that worth exploring ?

Crestor is a quite a big molecule for fy17. it is $6b and a growing molecule, They seem confident of doing well here.

They also mentioned in next 2 years there will be about 20 launches of which 5-6 will are very lucrative launches with limited competition.

Besides that, they are hiring a lot of R&D people of around 1000, and increasing the filings. The increased filings will start from q1fy17.
So from fy17, we will see increased filings with increasing complexity of ANDA filed (like cream and ointments and some would that would require clinical trials too) . Oncology green field plant is another positive.

They would also be launching many first timers in india with innovative dosage and combinations ( I think this is ajanta like strategy) and then replicate this india model in brazil.

Tax rate was 36% in 1H and will from fy16 point of view, it will be 25%. so, H2 there will be reduced tax rate.