Shares of PI Industries came under intense selling pressure on November 14, plunging as much as 9 percent after the company revised its FY25 revenue growth guidance sharply lower amid persisting industry challenges.
At 09.43 am, shares of PI Industries were trading at Rs 4,119.25 on the NSE.
The agrochemical company re-aligned its revenue growth guidance for FY25 to high single-digit amidst continued global industry challenges, a sharp cut from the previous 15 percent. It's also worth noting that this is the second time in FY25 that PI Industries has slashed its revenue growth guidance.
The company had initially guided for an 18-20 percent revenue growth for FY25, which was first lowered to 15 percent and then high-single digits now.
"There have been very strong headwinds for agrochemical industry globally. and there has been a negative growth all a cross the sector globally. I believe this hangover is going to continue in the global market next year. Looking at that we have given the growth estimate," the company's Vice Chairman and Managing Director Mayank Singhal had stated in a previous interaction with CNBC-TV18.
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As for earnings, PI Industries clocked a 5.8 percent year-on-year growth in its net profit at Rs 508.2 crore, up from Rs 480.5 crore. Revenue also grew 5 percent to Rs 2,221 crore against Rs 2,116.9 crore in the same quarter last fiscal.
Operational performance slightly improved as EBITDA margin stood at 28.3 percent in the quarter gone by as compared to 26.1 percent in Q2 of FY24.
The company reported that high inventory levels in export markets are slowing product offtake, while domestic markets are facing continued de-stocking and pricing pressure from generics. Domestic revenue dropped 5 percent year-on-year, though new product sales rose 42 percent. The quarter's weakness was mainly due to the pharma segment, where revenue fell to Rs 41 crore from Rs 72 crore last year, and EBIT losses widened to Rs 55 crore from Rs 38 crore year-on-year.
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