PI Industries – Superior Business Model

PI Industries Q3 Results Summary

Here are some additional key financial highlights I noted from the PI Industries Q3 FY2023 financial results:

Revenue

• Total revenue grew by 10% y-o-y to Rs 17,862 million in Q3 FY23
• Revenue growth driven by 8% growth in revenues from operations and higher other income
• Growth indicates steady business performance amidst challenging macro environment

Profits

• EBIDTA grew by 30% y-o-y to Rs 6,071 million in Q3
• EBIDTA margin expanded by 250 basis points to 34%
• Profit before tax up 36% y-o-y, reflecting robust growth in profitability

Expenses

• Total expenses contained at 12% of revenues compared to 13% in Q3 FY2022
• Raw material costs as a % of revenues has reduced indicating easing input costs
• Higher operating leverage supporting profit growth

Liquidity

• Company has large cash, liquid funds & fixed deposits of around Rs 19,500 Cr, primarily from past fundraise
• Supports investment ability for inorganic growth opportunities
• Interim dividend of Rs 6/share declared reflecting healthy cash generation

Segment Performance

• Agrochemicals business continues to dominate – accounts for 98% of Q3 revenues & profits
• Pharma remains small at 7% revenue share in Q3

Profit Growth:

• Profit before tax for Q3 FY2023 was Rs 5,454 million, reflecting a 36% year-over-year growth compared to Q3 FY2022
• This indicates that PI Industries has been able to deliver consistent and healthy profit growth in recent quarters

EPS Growth:

• Basic EPS for Q3 FY2023 was Rs 32.04, reflecting a year-over-year growth of 38% compared to Q3 FY2022 EPS of Rs 23.24
• Diluted EPS showed a similar 38% y-o-y growth from Rs 23.24 in Q3 FY2022 to Rs 32.04 in Q3 FY2023

So in summary, over the last year, PI Industries has delivered:

• Strong double-digit profit growth of 36% y-o-y
• Robust EPS growth of 38% on both basic and diluted basis

Overall the results portray solid operating performance by PI Industries across metrics in a challenging environment. Growth, margins and cash flows remain healthy.