Emkay Global Financial's report on PI Industries
PI’s CSM order book stood at USD1.5bn, implying new order wins at around ~USD108mn (considering ~USD108mn execution in Q2), which is at its lifetime high. Isagro acquisition, highest placement of Nominee Gold and improved volumes for Osheen (driven by Cotton/Rice) led to 33% yoy growth in domestic revenue. Q2 saw minimal Covid-19-related disruption with manufacturing facilities operating at preCovid levels. MPP-5, which was shut due to a fire incident in Jan’20, resumed operations. Management has maintained its 20%+ revenue growth in FY21.
Outlook
We believe that PI’s 188bps improvement in SG&A expenses should reverse partly after Covid-19 as costs related to physical marketing and travel would come back.
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