PI Industries - Q4FY21 First Cut - ICICI Direct

(CMP: Rs. 2741, MCap: Rs. 41584 crore)

Topline almost in line with estimates however operating margins came below than estimates primarily due to higher RMAT cost.

Q4FY21 Earnings Summary

- PI Industries reported topline growth of 40% YoY to Rs. 1197 crore against our estimates of Rs. 1185 crore. The segmental details are still not out, however we expect the growth should be led by both CSM and domestic formulation business

- Higher RMAT cost (57.9% of sales in Q4FY21 v/s 53.1% in Q3FY21 & 53.2% in Q4FY20) translated into lower operational performance for the quarter. OPM contracted by 279bps YoY to 19% leading to EBITDA growth of 22% YoY to Rs. 227 crore against our estimates of Rs. 290 crore

- Higher other income (Rs. 44 crore v/s Rs. 7.6 crore in Q4FY20) owing to increase in liquid investments/cash post QIP negated the impact of poor operational performance to certain extent. PAT grew by 63% YoY to Rs. 179.9 crore against our estimates of Rs. 212.3 crore

We would be coming out with a detailed report soon.

Shares of PI Industries Ltd was last trading in BSE at Rs.2740.9 as compared to the previous close of Rs. 2699.45. The total number of shares traded during the day was 16120 in over 1507 trades.

The stock hit an intraday high of Rs. 2768 and intraday low of 2700. The net turnover during the day was Rs. 44207003.

Source : Equity Bulls

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