PI Industries Limited has shown 8 percent growth in Q1 FY 25 to reach Rs. 2,068.9 crore whereas net profit was up 17% to reach Rs. 448.8 crore.  

There was 14% growth in Agchem Exports mainly driven by volumes and growth of new products. New products growth around 24% Y-o-Y. Domestic revenues were subdued mainly due to delayed sowing and erratic spread of monsoon although favourable product mix and improved working capital management helped in containing the financial impact.  Biological products’ driving growth and revenue increased by around 39% Y-o-Y. Pharma contributed exports revenue of Rs. 25.3 crore and it dipped due to supply deferment of a few products. Net profit improved by 17% Y-o-Y attributable to EBITDA growth despite increased ETR of 20.7% (Q1FY24 ETR 14.0%).

Total Capex for Q1 FY25 is Rs. 152.3 crore as against Q1 FY24 at Rs. 124.1 crore. Free cash flow generation increased 62% to Rs. 506.7 crore (Q1 FY23 Rs. 313.2 crore).

The company has offered to acquire Plant Health Care Plc (PHC), an AIM UK-listed company with subsidiaries in the US, Brazil, Mexico and a few other countries. PHC has industry-leading knowledge, products, IP and experience in protein/ peptide technology in the agriculture biological space. PHC technology has gained good traction over the last few years with the registration and commercialisation of its patented PREtec peptide products. Peptides represent the next generation of biological crop protection because of high effectiveness and favorable environment profile.

In addition to a strong R&D base in the US, PHC products have good acceptance with growers in key markets e.g. the US, Brazil, Europe, and Mexico. PHC had consolidated revenue of around US $11 million with gross margin of 60% for the year ended December 2023 and growing at 20%+ Y-o-Y in the current fiscal.

Consummation of the proposed acquisition is subject to the Scheme becoming effective through a UK court process, expected to be completed by the end of Q2 FY25.