Great Q2 results. Turnaround story continues. Profit of 2.56 Cr in Q2 FY 16 vs Loss of 7.39 Cr in Q2 FY 15. No wonder Promoters have raised their stake from 61.83% to 66.79% in last one year 
http://www.bseindia.com/corporates/anndet_new.aspx?newsid=4f6eb3f0-95e3-4203-839e-67bf818418cb
Disc – invested
Strong set of Q2 numbers.
Sales growth : 16% 333 Cr Vs 386 Cr
PAT Growth : 56% 17.3 Cr Vs 27 Cr
Margin : 7%
Disc : Invested
Also declared second interim dividend of Rs. 0.15 per share.
Disc – Invested
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Q2 FY2016 results are out : strong improvement in gross profit margin (all thanks to USA plant) and hence meaningful PAT growth of 30% y-o-y and q-o-q both. In fact, PAT growth is so strong that H1 FY2016 PAT of Rs. 23 cr. is ~42% higher than H1 FY2015 PAT of Rs. 16.5 cr!!
Key questions which come to mind –
1. Why is there no sales growth from India plant?
2. Gross profit margin at USA plant seems very high. Are they sustainable?
3. For FY2016 guidance, it seems management will over achieve its PAT guidance very easily. However, will it be able to achieve sales guidance?
4. Are we on track to start commercial production of Nylon 66 plant at Silvassa?
5. The big client from USA, who had approved yarn package supplies from Sarla’s USA plant, did that dialogue progress?
6. Any other meaningful update at USA plant?
Shaily come up with another good set of Numbers. Very good quarter Indeed.
Could you tell when there are environmental concerns for usage of Boron in Soaps & Detergents. The element seems to be needed by organisms, although concentrated amounts in soil are bad for plants, would that be the case?
More than a quarter of Inter-Globe Aviation’s anchor book that was opened on Monday has been subscribed to by marquee investors participating in an Indian IPO for the first time. What’s more, they have invested in the world’s biggest, most profitable budget airlines. The first time investors include Neuberger Berman, a long term fund, APG a Dutch pension fund, Harvard Management Company and hedge funds Davis International Fund and Hutchin Hill which are invested through a P-note entity, said two people in the know.
Other names include Acacia Partners LP (Ruane, Cunniff & Goldfarb or RCG which had invested in the MCX IPO in 2012) and Columbia Threadneedle which is back after three years, he added.
Most of these are or have invested in global low fare carriers, the person said: Neuberger in Southwest Airlines, the world’s biggest budget airline, JetBlue, EasyJet and Spirit Airlines; APG in EasyJet, Ryanair and Air Arabia, RCG in EasyJet and Davis in JetBlue, Southwest and Spirit.
Columbia Threadneedle manages $471 billion of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives. Neuberger Berman in 2014 managed assets worth $251 billion, according to its latest annual report. Harvard Management manages the eponymous Ivy league university’s $37 billion endowment as well as its related financial assets, using a hybrid structure integrating internal and external management. RCG runs the flagship Sequoia Fund and manassets worth over $30 billion. The origins of the fund can be traced back to one of the late founder Bill Ruane’s friendship with Warren Buffet.
This shows the airline is bringing in new names to invest in India’s corporate story. “A new investor is typically more cagey about putting in money than one with experience. These names show investors believe in IndiGo’s business model and India’s growth story,” said Prithvi Haldea, chairman and managing director of Prime Database, a tracker o ..
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
Good improvement in Balance sheet.
Debt reduced, current investments have improved a lot.
Good jump in Capital WIP also.
