PI industries Q2FY23 net profit rises 46%; Surplus cash at INR 2,321 crore

PI Industries shares rose 7.25% to INR 3536.45 after the company reported 46% jump in consolidated net profit to INR 334.8 crore on a 31% rise in revenue to INR 1,770 crore in Q2 FY23 on year-on-year basis.

The company recorded 29% growth in exports on a higher base, led by volume growth of approximately 25%, favorable price and currency of approximately 4%. Domestic business registered 36% YoY growth, mainly driven by volume growth of approximately 31% and price increase of approximately 5%. “Newly launched brands contributed to significant revenue growth, the company said.

Overheads increased by 16% to INR 368.4 crore in Q2 FY23 from INR 317.9 crore in Q2 FY22. Gross margin in the second quarter remained stable at 45%. The company further added that the trend of rising input costs and passthrough continued both in exports and domestic businesses during Q2 FY23.

The company’s total capex for H1 FY23 was INR 120.4 crore as against INR 161.4 crore in H1 FY22. It maintained higher inventory levels of INR 1,609.5 crore in order to avert supply chain disruptions and meet customer supply schedules / continued operations. Trade working capital in terms of ‘days of sales’ was 111 days in H1 FY23 as compared with 103 days as on 31 March 2022. Net cashflow from operating activities was INR 307.8 crore as against INR 182.2 crore in H1 FY22. Surplus cash net of debt is INR 2,321.1 crore.