|
Report Date : |
01.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
PI INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
Post Box No. 20,
Udaisagar Road, Udaipur-313001, Rajasthan |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
31.12.1946 |
|
|
|
|
Com. Reg. No.: |
17-000469 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 136.109 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24211RJ1946PLC000469 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JDHP01697D |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing and
Marketing of Pesticides, Industrial Chemicals and Polymers, etc. |
|
|
|
|
No. of Employees
: |
1401 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD21000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established company having fine track record. The rating reflects healthy financial risk profile supported by
company’s established position in the domestic agro chemicals business,
adequate liquidity position and decent profitability of the company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com while quoting report
number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital firms
in India during 2013, registering a drop of about 18 % over the previous year.
The Information Technology and IT-Enabled Services Industry retained its
status as the favourable venture capital investors in 2013. Pakistan has
temporarily banned gold imports for the second time in six months, as it tries
to stem smuggling into India. India’s import duty on gold is 10 % and curbs on
purchases have dried up legal imports into what used to be the world’s biggest
bullion buyers. The World Gold Council puts the amount smuggled into India at
upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed
bank deposits estimated to be about Rs 35000 mn be used for education and
awareness among depositors. According to the plan, deposits that have not
been claimed for at least 10 years will be transferred to the scheme.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating : AA |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
November 28, 2013. |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating : A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
November 28, 2013. |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED BY
Management Non Co-operative
(Tel. No.: 91-294-6454304)
LOCATIONS
|
Registered Office / Factory 1 : |
Post Box No. 20,
Udaisagar Road, Udaipur - 313001, Rajasthan, India |
|
Tel. No.: |
91-294-6454304/305/ 2491451-5/ 2491477 |
|
Fax No.: |
91-294-2491946/ 2491384 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office/ Share Department : |
5th Floor, Vipul Square,B Block,
SushantLok,Phase - 1, Gurgaon-122009, Haryana, India |
|
Tel. No.: |
91-124-4159000/
6790000 |
|
Fax No.: |
91-124-4081247 |
|
|
|
|
Factory 2 : |
Lane IV, |
|
|
|
|
Factory 3 : |
Plot No. 237, GIDC, Panoli, District Bharuch- 313001, Gujarat, India |
|
Tel. No.: |
91-2646-272392/320797/655471/72 |
|
Fax No.: |
91-2646-272313/348 |
|
E-Mail : |
|
|
|
|
|
Factory 4 : |
Plot No. SPM 28, Sterling SEZ, Village Sarod, Jabusar – 392180, Gujarat, India |
|
|
|
|
Branches : |
Located At · Ranchi · Kolkata · Siliguri · Cutteck · Bathinda · Patna · Guwahati · Raipur |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. SalilSinghal |
|
Designation : |
Chairman and Managing Director |
|
Address : |
Lake House, P PSinghal Marg, Udaipur – 313001, Rajasthan, India |
|
Date of
Birth/Age : |
21.08.1946 |
|
4Date of
Appointment : |
03.12.1984 |
|
|
|
|
Name : |
Mr. MayankSinghal |
|
Designation : |
Managing Director and Chief Executive Officer |
|
Address : |
P PSinghal Marg, Udaipur – 313001, Rajasthan, India |
|
Date of
Birth/Age : |
03.04.1973 |
|
Date of
Appointment : |
28.09.1998 |
|
|
|
|
Name : |
Mr. AnuragSurana |
|
Designation : |
Whole Time Director |
|
Address : |
Ameya Plot No. 1 / 2, B/H SagarDarshan Apartment, Devali, Udaipur –
313004, Rajasthan, India |
|
Date of
Birth/Age : |
22.01.1965 |
|
Date of
Appointment : |
30.09.1998 |
|
|
|
|
Name : |
Mr. P. N. Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Raj Kaul |
|
Designation : |
Director |
|
Date of
Birth/Age : |
30.10.1942 |
|
Qualification
: |
B.Sc (Engg) Hons. and Diploma in
BusinessAdministration |
|
Date of
Appointment : |
18.01.2008 |
|
|
|
|
Name : |
Mr. Narayan K Seshadri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Bimal Kishore Raizada |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pravin K. Laheri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. RamniNirula |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mrs. RajnishSarna |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. Venkatrao S. Sohani |
|
Designation : |
Additional Director |
KEY EXECUTIVES
|
Name : |
Mr. Naresh Kapoor |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2013
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of Total No. of Shares |
|
|
||
|
(A) Shareholding
of Promoter and Promoter Group |
||
|
|
|
|
|
|
5868720 |
4.31 |
|
|
73851390 |
54.26 |
|
|
79720110 |
58.57 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
79720110 |
58.57 |
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
7497925 |
5.51 |
|
|
2024 |
0.00 |
|
|
26675665 |
19.60 |
|
|
34175614 |
25.11 |
|
|
|
|
|
|
2996662 |
2.20 |
|
|
|
|
|
|
6186514 |
4.55 |
|
|
3617998 |
2.66 |
|
|
9412182 |
6.92 |
|
|
24409 |
0.02 |
|
|
2011515 |
1.48 |
|
|
366038 |
0.27 |
|
|
1857298 |
1.36 |
|
|
160384 |
0.12 |
|
|
4992538 |
3.67 |
|
|
22213356 |
16.32 |
|
Total Public
shareholding (B) |
56388970 |
41.43 |
|
Total (A)+(B) |
136109080 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
136109080 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Marketing of Pesticides, Industrial Chemicals and Polymers, etc. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2012)
|
Particulars |
Unit |
Actual
Production |
|
Chemicals including by-product/
Traded goods |
In tonnes |
49046 |
GENERAL INFORMATION
|
No. of Employees : |
1401 (Approximately) |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
Ø
State Bank
of Bikaner and Jaipur Ø
State Bank
of India Ø
Axis Bank Limited Ø Standard Chartered Bank |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
Note: LONG TERM
BORROWING a. Indian Rupee Loan from Banks includes: All Indian Rupee
Loans from Banks outstanding as on March 31, 2012 have been paid off during
the year and there are no loansoutstanding as on March 31, 2013. b. Foreign Currency Loan includes: ECB from
Standard Chartered Bank amounting to USD 20.000 Millions carrying interest
rate of 90 days LIBOR plus 2.75% is outstanding as onMarch 31, 2013 and is
repayable in 15 Quarterly installments of USD 13.33 lacs each, beginning from
April 2013. The loan is securedby first exclusive charge on movable fixed
assets of the Company situated at Jambusar, Gujarat. c.Loans from Financial Institutions The loan amount
outstanding from Financial Institutions as on March 31, 2012have been paid
off during the year, and there is no outstanding loan as on March 31, 2013. SHORT TERM
BORROWING Working capital loans are secured Working capital
loans are secured by way of first charge on paripassu basis by hypothecation
of stocks of raw materials, finished and semi-finished goods, stores &
spares not related to plant and machinery, bills receivable, book debts and
additionally secured by way of secondcharge on all the immovable properties
of the Company excluding leasehold land situated at Jambusar in favour of the
consortium bankers.Working Capital Loan includes Foreign currency Loan
(Buyers Credit Loan) amounting to Rs.67.866 Millions (Previous Year Rs. Nil Millions). |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S.S. Kothari Mehta and Company Chartered Accountants |
|
Address : |
New Delhi, India |
|
|
|
|
Internal Auditor
: |
Protiviti Consulting Private
Limited |
|
Address : |
Gurgaon |
|
|
|
|
Cost Auditors : |
|
|
Name : |
K.G. Goyaland Company Cost Accountants |
|
Address : |
Jaipur, Rajasthan, India |
|
|
|
|
Holding Company |
Ø Prateek Finance
and Investment Company (w.e.f. 01.01.2013) |
|
|
|
|
Subsidiaries : |
Ø PILL Finance and Investments Limited Ø PI Life Science Research Limited Ø PI Japan Company Limited |
|
|
|
|
Enterprises in respect of which reporting enterprise is an associate : |
Ø Lucrative Leasing Finance and Investment Company Limited Ø Parteek Finance and Investment Company Limited |
|
|
|
|
Enterprises over which KMP and their relatives are able to exercise
significant influence : |
Ø Samaya Investment and Trading PrivateLimited Ø Wolkem India Limited Ø Secure Meters Limited Ø Singhal Foundation Ø PI Foundation Ø PII ESOP Trust |
CAPITAL STRUCTURE
AFTER 28.09.2013
Authorised Capital :Rs.
700.000 Millions
Issued,Subscribed & Paid-up Capital :Rs. 136.109
Millions
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40000000 |
Equity Shares |
Rs. 5/- each |
Rs. 200.000 Millions |
|
5000000 |
Preference Shares |
Rs. 100/- each |
Rs. 500.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 700.000
Millions |
Issued :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
27127145 |
Equity Shares |
Rs. 5/- each |
Rs. 135.636
Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
27091830 |
Equity Shares |
Rs. 5/- each |
Rs. 135.459
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
135.459 |
125.242 |
192.875 |
|
(b) Reserves & Surplus |
5,110.475 |
3,066.783 |
1,913.468 |
|
(c) Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
5,245.934 |
3,192.025 |
2,106.343 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
851.142 |
1,190.570 |
589.862 |
|
(b) Deferred tax liabilities
(Net) |
478.134 |
324.287 |
322.898 |
|
(c) Other long term
liabilities |
125.379 |
105.986 |
94.473 |
|
(d) long-term provisions |
21.520 |
17.696 |
13.689 |
|
Total
Non-current Liabilities (3) |
1,476.175 |
1,638.539 |
1,020.922 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1,022.163 |
1,131.286 |
1,552.771 |
|
(b) Trade payables |
2,412.121 |
963.862 |
1,057.030 |
|
(c) Other current liabilities |
925.780 |
878.548 |
755.163 |
|
(d) Short-term provisions |
204.477 |
162.479 |
119.836 |
|
Total
Current Liabilities (4) |
4,564.541 |
3,136.175 |
3,484.800 |
|
|
|
|
|
|
TOTAL |
11,286.650 |
7,966.739 |
6,612.065 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
4,727.856 |
2,922.820 |
2,506.642 |
|
(ii) Intangible Assets |
20.700 |
17.891 |
11.539 |
|
(iii) Capital work-in-progress |
551.397 |
777.691 |
313.626 |
|
(iv) Intangible assets under
development |
53.791 |
32.331 |
7.077 |
|
(b) Non-current Investments |
19.677 |
19.677 |
19.677 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
90.794 |
190.612 |
187.689 |
|
(e) Other Non-current assets |
17.658 |
16.294 |
13.982 |
|
Total
Non-Current Assets |
5,481.873 |
3,977.316 |
3,060.232 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
2,417.458 |
1,787.513 |
1,409.800 |
|
(c) Trade receivables |
2,625.370 |
1,718.690 |
1,747.657 |
|
(d) Cash and cash equivalents |
120.045 |
76.268 |
67.693 |
|
(e) Short-term loans and
advances |
602.783 |
387.923 |
313.988 |
|
(f) Other current assets |
39.121 |
19.029 |
12.695 |
|
Total
Current Assets |
5,804.777 |
3,989.423 |
3,551.833 |
|
|
|
|
|
|
TOTAL |
11,286.650 |
7,966.739 |
6,612.065 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
11475.643 |
8749.696 |
7159.254 |
|
|
|
Sale of services |
0.000 |
0.000 |
0.564 |
|
|
|
Other operating Revenues |
29.683 |
21.209 |
23.490 |
|
|
|
Other Income |
83.660 |
51.906 |
105.053 |
|
|
|
TOTAL |
11588.986 |
8822.811 |
7288.361 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials consumed |
6429.605 |
4866.806 |
4173.805 |
|
|
|
Purchase of Stock in Trade |
295.202 |
390.002 |
326.456 |
|
|
|
Changes in Inventories of finished goods, work in
progressand stock in trade |
17.196 |
(335.986) |
(295.075) |
|
|
|
Employee Benefits expenses |
864.373 |
701.712 |
582.107 |
|
|
|
Other Expenses |
2105.562 |
1737.745 |
1260.813 |
|
|
|
TOTAL |
9711.938 |
7360.279 |
6048.106 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
1877.048 |
1462.532 |
1240.255 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
221.451 |
201.092 |
186.020 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
1655.597 |
1261.440 |
1054.235 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
218.131 |
171.094 |
155.907 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX, EXCEPTIONAL ITEMS |
1437.466 |
1090.346 |
898.328 |
|
|
|
|
|
|
|
|
|
Less/ Add |
EXCEPTIONAL ITEMS |
0.000 |
(303.428) |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
1437.466 |
1393.774 |
898.328 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
474.019 |
388.359 |
257.542 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
963.447 |
1005.415 |
641.167 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
2091.800 |
1332.500 |
813.800 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
96.300 |
100.500 |
64.117 |
|
|
|
Equity Shares – Proposed |
135.500 |
75.100 |
50.100 |
|
|
|
Preference Shares – Proposed |
0.000 |
0.000 |
0.008 |
|
|
|
Interim Dividend on Equity Shares |
0.000 |
50.100 |
0.000 |
|
|
|
Income tax on Interim Dividend |
0.000 |
8.100 |
0.000 |
|
|
|
Dividend Distribution Tax |
22.400 |
12.200 |
8.300 |
|
|
BALANCE CARRIED
TO THE B/S |
2800.600 |
2091.800 |
1332.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods on FOB Basis |
6280.041 |
3915.026 |
2487.739 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3379.650 |
1855.137 |
1670.498 |
|
|
|
Stores & Spares |
8.705 |
26.404 |
16.856 |
|
|
|
Capital Goods |
22.191 |
46.012 |
39.559 |
|
|
TOTAL IMPORTS |
3410.546 |
1927.553 |
1726.913 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic (in Rs.) |
7.57 |
8.05 |
NA |
|
|
|
Diluted (in Rs.) |
7.52 |
8.00 |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total
Income |
(%) |
8.31
|
11.40
|
8.80
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.53
|
15.93
|
12.55
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.04
|
14.09
|
10.22
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.31
|
0.30
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.36
|
0.73
|
1.02
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.27
|
1.27
|
1.02
|
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
192.875 |
125.242 |
135.459 |
|
Reserves & Surplus |
1,913.468 |
3,066.783 |
5,110.475 |
|
Net
worth |
2,106.343 |
3,192.025 |
5,245.934 |
|
|
|
|
|
|
long-term borrowings |
589.862 |
1,190.570 |
851.142 |
|
Short term borrowings |
1,552.771 |
1,131.286 |
1,022.163 |
|
Total
borrowings |
2,142.633 |
2,321.856 |
1,873.305 |
|
Debt/Equity
ratio |
1.017 |
0.727 |
0.357 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
7,159.25 |
8,746.70 |
11,475.64 |
|
|
|
22.173 |
31.200 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
7,159.254 |
8,746.696 |
11,475.643 |
|
Profit After Tax |
641.167 |
1,005.415 |
963.447 |
|
|
8.96% |
11.49% |
8.40% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the fbusiness |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOANS
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
LONG TERM
BORROWING |
|
|
|
Deposit (Secured
Loan) |
|
|
|
Directors |
11.718 |
13.459 |
|
Shareholders |
9.748 |
4.591 |
|
Others |
31.956 |
33.720 |
|
Loans Repayable on Demand |
|
|
|
- From Promoter Companies |
0.000 |
11.500 |
|
- From Subsidiary Companies |
0.000 |
25.500 |
|
Packing Credit Foreign Currency
Loan |
256.551 |
409.592 |
|
Total |
309.973 |
498.362 |
Note:
Long Term
Borrowing
Deposits from
Directors, Shareholders and Others carries interest ranging from 9% to 11%
depending upon the amount of deposit.Non-cumulative deposits have a maturity
period of two years and are paid interest at the interval of every six months.
Cumulative deposits have maturity period of three years and the interest is
compounded six monthly.
As on the Balance Sheet date there is no default in repayment of loans
and interest.
KEY
HIGHLIGHTS:
The net sales for the year grew to Rs. 11505.300Millions
from Rs. 8770.900Millionslast year i.e. a growth of 31% YoY The operating profit
for the year grew to Rs. 1877.000 Millions from Rs. 1462.600Millions last year
i.e., an increase 28% YoY.
The Net Profit for the year on stand-alone basis grew to Rs.
963.400Millionsfrom Rs. 777.800Millions (excluding exceptional items) in the
previous year i.e., an increase of 24% YoY. The Company’s net profit on a
consolidated basis increased to Rs. 973.400Millions during the year as compared
to Rs. 790.700Millions in the previous year(excluding exceptional items), a
growth of 23% YoY.
The earnings per share (EPS) for the year stood at Rs. 7.57
per sharean increase of 21% compared to Rs. 6.23 per share
(excludingexceptional items) for the previous year.
2. OPERATIONS
FY 2012-13 was a
tough year for Indian agriculture and agro chemical industry. Serious
challenges were posed by the delayed and not-so-well distributed monsoon in the
key agriculturally important geographies of the country. Till mid-July, out of
36 meteorological subdivisions, rainfall was excess/normal over 11, deficient
in 22 and scanty in 3 sub-divisions. In area-wise distribution, only 24% area
of the country received excess/ normal rainfall and remaining 76% area received
deficient/ scanty rainfall. Acreages under key crops such as rice, wheat,
chillies, pulses and cotton were adversely impacted reducing the overall food
grain production. Rabi season recoveries were not sufficient enough to cover
the losses of kharif. Poor kharif season also caused rising market inventories
finally resulting in the erosionof prices and margins of agro chemicals
However despite these challenges, company could pose a
reasonable growth of ~11% YoY through introduction of new products, increasing
business from the core in-licensed products and increasing distribution base
towards the underdeveloped markets.
Over the years, have been able to build strong capabilities
in process research, process engineering and large-scale manufacturing.These
capabilities have helped to develop a strong portfolio of products and the
ability to offer increasing suite of services, which has led to a consistent
growth in Custom Synthesis exports with another year of healthy growth of ~58%
YoY. Faster scale-up cycles of existing products, commercialization of 4 new
products and enhanced operational productivity are some of the key factors,
which contributedto this growth.
REVIEW OF OPERATIONS
FINANCIAL PERFORMANCE
The Company’s
net sales for the yeargrew to Rs.11505.300Millionsfrom Rs.8770.900 Millions
last year reflecting an increaseof 31% Y-o-Y. This growth was mainlydriven by
robust ramp up in customsynthesis exports, which grew by~58% Y-o-Y to Rs.6000.000Millions
from Rs.3780.000 Millions undertaken in the previous year.
Revenue
from the domestic agri input grew by ~11% to Rs.5500.000Millions as a resultof
sustained growth of key brandsdespite encountering sub-optimal
agroclimaticconditions.The operating profit for the year grewto Rs.1877.000 Millions
from Rs.1462.600Millionslast year reflecting an increase of 28%Y-o-Y despite an
under-absorptionof costs at the newly commissioned Jambusar facility in the
fourth quarter.The net profit for the year on astandalone basis grew to Rs.963.400
Millions from Rs.777.800Millions(excludingexceptional item arising from sale
ofpolymer compounding business), anincrease of 24% Y-o-Y and resulting in a
basic EPS of Rs.7.57 per share.
During
the year, Company invested Rs.1603.000Millions(net of depreciation) in the
additionof fixed assets towards building ofa new manufacturing site, increasein
production as well as research andanalysis capacities. Overall, net fixed
assets increased to Rs.5353.700Millions as on31 March, 2013 from Rs.3750.700Millions
inthe previous year, reflecting an increaseof 43% Y-o-Y.The net working capital
of the Company(inventory + receivables – payables)as on 31 March, 2013 of
Rs.2630.700Millions only marginally increased by~3% over previous year of Rs.
2542.300 Millions reflecting better managementof working capital for the
business,growing by ~31% during the year .
The
Company’s net worth increased by ~64% to Rs.5245.900Millions as on31 March 2013
on account of anincrease in earnings and networthinfusion following a QIP. The
networthas a proportion of capital employedincreased from 66.32% in 2011-12
to78.29% in 2012-13, strengthening theoverall Balance Sheet.The total
debt-equity ratio significantlyimproved to 0.35 as on 31 March, 2013against
0.73 as in March 2012 owing to an increase in the net worth along witha reduction
in long-term debt.During the year, the Company raised Rs.1173.300Millions throughthe QIProute, which saw
participationby some highly reputed investorsin India and across the globe.
TheCompany issued 19, 24,656 Equity Shares of face value of Rs.5 per Equity
Share at a price including a premium. Funds raised inthe QIP have been deployed
towardsfresh capital expenditure, retirement ofhigh-cost debt and additional
working capital requirement.As a result of Company’s improvedfinancial profile
and continued solidbusiness performance, the credit ratingagency CRISIL
upgraded the Company’sbank loan credit rating to ‘A+ stable ‘for long-term
debts and ‘A1’ for shorttermdebts.
MANAGEMENT
DISCUSSION AND ANALYSIS
GLOBAL ECONOMIC REVIEW
The
global economy posted a 3.1%growth in 2012, marginally lower than3.9% in 2011.
The United States, thelargest economy, have posted betternumbers (2.2% in 2012
against 1.8%in 2011) while the Eurozone reported anegative growth of 0.6%. Much
of thisdecline is assumed to have extendedto hitherto fast-growing
emergingmarkets: China’s growth slowed from9.3% to 7.8% in 2012.
However,economists expect the scenario toimprove; going ahead, growth
inemerging markets and developingeconomies is expected to rise to 5%in 2013
INDIAN ECONOMY
Indian
economic growth deceleratedto an estimated 5% in 2012-13against 6.2% 2011-12,
the slowest in a decade. An erratic monsoon anddrought-like situation in many
regionsaffected its agriculture sector. Growthmoderation also extended to
weaknessin the industry segments (mining andquarrying, manufacturing,
electricity,gas and water supply, and construction)where growth was 3.1% while
themanufacturing sector grew only by1.9%. The growth of the services sectorwas
at a lowered 6.6% in 2012-13 asagainst 8.2% in 2011-12.
DOMESTIC AGRICULTURE
AND AGRI INPUT REVIEW
Agriculture
is the mainstay of the Indianeconomy because of its significantcontribution to
employment andlivelihood creation. More than half theIndian population relies
on agriculturefor employment and livelihood.
Interestingly,
India accounts for about and 4% of its water resources, butneeds to support
17% of the world’shuman population and 15% of theworld’s livestock.Agriculture
accounts for 14% of India’sGDP, about 11% of its exports andabout half its
population’s principalincome. This makes it imperativefor Indian agriculture
production toincrease so as to service India’s overallGDP target of 8% during
the 12thFive Year Plan as well as address therising demand for food. The
country’sagricultural sector is marked bymoribund arable land, disintegrationof
land holdings, low productivitycompared with global peers and varyinyields
across states. This enhancesthe role of crop protection products,high yielding
seeds, balanced usage of fertilizers and educating farmers withmodern farming techniques.
In 2011-12, India experienced a recordfood grains production of 259.32million
tonnes (131.27 million tonnesduring the kharifseason
and 128.05million tonnes during the rabiseason).The
second advance estimate for2012-13 indicated a total foodgrainsproduction at
250.14 million tonnes(Rs.124.68 million tonnes during and Rs.125.47 million
tonnes duringthe rabiseason),
the decline in production was on account of a latemonsoonaloffset and deficient
rainfallin several states. Even as the productionofrice, sugarcane and cotton
during2012-13 was lower than in theprevious year, these were better thanthe
average production during the lastfive years.
A growing
population and risingper capita income are strengtheningdemand for food grain:
from Rs.192million tonnes in 2000 to an estimated Rs.355million tonnes in 2030,
making itimperative for food grain productionto increase Rs.5.5 million
tonnesannually to address growing domesticrequirements.
GLOBAL CUSTOM SYNTHESIS AND MANUFACTURING SCENARIO
The
crop protection segment has typically been a highly competitive market with
more than 85% of the global demand being met by the top10 companies. Asia and
Latin Americacontinue to drive incremental growth with market shares of 25% and
19%respectively. Lately, they have seen adrastic increase in the R&D costs
of top agrochemical companies, reiterating the need for organized and outsourced
research. Over FY 2005-08, companies have spent about US$256mn on an average to
discover new molecules, each of which took ~10 years todevelop.The global
chemical market size was pegged at around US$740 bn at the end of FY 2010-11
and is expectedto touch US$970 billion by FY 2015-16.Bulk of the global demand
growth is expected to be driven by countries inthe Asia-Pacific and the Middle East
which have currently lower levels of consumption. On the other hand, theIndian
chemical industry is emerging as a major player in the global scenario with the
size of Indian chemical industrystanding at around US$100 billion at the end of
FY 2011-12.
The
outsourcing of process researchand manufacturing to credible playersin emerging
markets, who can offerquality at par with that of the patentholders while
delivering strong costadvantages, is the result of thefollowing factorsHigh
cost of skilled manpower in developedmarketsFocus on R&D and global
marketingrather than on manufacturing in highcost economiesNeed for shortening
discovery cyclesto monetize the same in a timelymannerProximity togrowing /
emergingmarketsRising regulatory costs in developedcountriesThe global fine
chemicals industry isestimated to be valued around US$300 billion by 2015 with
a growth of7-8%, mostly based in Asia. Thecustomsynthesis and manufacturing
(CSM)segment is estimated at around US$ 85billion.
SUBSIDIARY COMPANIES
The
Company has three wholly owned subsidiary companies as on March 31, 2013.
The members may refer to the Statementunder section 212 of the Companies Act,
1956 information onthe financials of subsidiaries appended to the above
statementunder section 212 of the Companies Act, 1956 in this AnnualReport for
detailed information on these subsidiary companies.The key highlights of these
subsidiary companiesare as under:
PI Life Science Research Limited. (PILSR): During the year,
the Company has posted a profit of` 6.938 Millions
which was earned on account of various R and Dactivities for developing new
products.
PI Japan Company Limited: The Company posted
a profit of JPY Rs. 1.856 Millions (Approx.Rs.
1.221 Millions) during the year.Due to the
size of operations and local laws, the annualaccounts of this company are not
required to be audited.The same have been certified by the Management of
theCompany.
PILL Finance and Investments Limited. (PILL-F):The Company has posted
a profit of Rs.1.635 Millions during theyear.
OUTLOOK
The
Company is poised to build onthe revenue and margins momentum. the expect to
achieve a compoundedannual revenue growth of over 25%forthe next three years
leading to anevenhigher growth in operating profits byleveraging efficiencies.A
distinctive positioning of existingand newly introduced molecules inthe
domestic agri-input market willdrive continued volumes upside. Company intends
to launch newmolecules under its own registration inthe coming fiscal. Products
that werelaunched in the last couple of yearswould also see an appreciable climb
in performance in line with a growingfarmer choice.
Custom
synthesis exports wouldcontinue to be a major growth driver,helping the
Company report superiorperformance due to robust volumegrowth in existing
molecules as theygain an increasing market of themarket. Continuing
relationships withinnovators resulted in a robust pipelineof new products. New
molecules are setto be commercialised over the comingyears, which will enhance
capacityutilisation. An attractive basket ofproductsin various development
stageswill further add to Company’sgrowth.The Company aspires to focus
onderiving maximum operating and freecash flows, rationalising debt andfueling
growth.
The success has
been possible dueto unwavering commitment tovalues of respect and
knowledgesharing, nurturing and growing people and stretching ourselves
acrossall operational aspects. they believe ina partnership approach and seek
toreassure that PI will strive for leadershipin its chosen markets based on
thecapabilities and the relationships thathave built.I take this opportunity to
expressgratitude to all stakeholders including customers, partners,
vendors,suppliers, independent directors,bankers and shareholders for
reposingheir faith in PI. I also take this moment to commend employees
forexecuting plans and strategy in an effective way.
Outlook and opportunities
The
domestic agri-input business is on track to grow faster than the average
industry growth rate due to a robust pipeline of products at different stages
of development and registration. It is also poised to witness an increase in
margins owing to a growing proportion of in-licensed products.
The
outlook forthe ensuing year will be guided by:Pace of new product introduction;duringFY
2013-14, Company isexpecting to introduce two to threenew products. All these
products willhave their distinctive features andadvantages in the respective
targetsegments.Besides, products launched duringthe past two to three years are
slatedto deliver a marked improvement inperformance as their adoption andusage
increase.Forecast of ‘normal’ rainfall via thesouth west monsoons will push
timelyand increased sowings and enhanceddemand offtake.
The
custom synthesis exports would continue to be a major driver for Company due toRobust
volume growth in existing molecules as they gain an increasing marketshareContinuing
relationships withinnovators resulting in a robust pipeline of new productsTwo
to three new molecules set to becommercialised during FY 2013-14,which will
enhance capacity utilization at existing operationsStrategically aligning
resources at the newJambusar SEZ will be the next big growth driver. Plans are afootto
add more capacities in Jambusarand commercialize more products to leverage the
sites. Utilisationlevels at the existing operations meanwhile continue to stay
at high levels as existing molecules gain traction due to increasing market
share. The Company possesses a robust pipeline of new products; a few of those
will getcommercialised every year.
STATEMENT OF
UNAUDITED STANDALONE RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH
DECEMBER, 2013
(Rs, in millions)
|
Particular |
Quarter Ended |
Half Year Ended |
|
|
|
31.12.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
Income from Operations |
|
|
|
|
Net Sales/Income from Operations |
3628.866 |
4611.426 |
12296.573 |
|
Other Operating Income |
5.021 |
16.138 |
25.579 |
|
Total Income from
operations (net) |
3633.887 |
4627.564 |
12322.152 |
|
|
|
|
|
|
Expenses |
|
|
|
|
(a) Cost
of Material Consumed |
1976.880 |
2598.400 |
6949.539 |
|
(b) Purchase of stock in trade |
94.821 |
125.149 |
401.944 |
|
(c) Changes in inventories of finished goods, work in progress and
stock in trade |
(50.855) |
70.156 |
(137.041) |
|
(d) Employee benefit expenses |
260.111 |
237.155 |
771.003 |
|
(e) Depreciation and amortization expenses |
78.688 |
80.065 |
231.968 |
|
(f) Other Expenses |
726.010 |
675.684 |
1999.750 |
|
Total Expenses |
3085.655 |
3786.609 |
10217.163 |
|
Profit from Operations
before Other Income, Finance costs and Exceptional item |
548.232 |
840.955 |
2104.989 |
|
Other Income |
40.159 |
31.109 |
78.227 |
|
Profit/ Loss from
Ordinary Activities before Finance costs and Exceptional item |
588.391 |
872.064 |
2183.216 |
|
Finance costs |
20.007 |
26.669 |
84.873 |
|
Exchange
Fluctuation (Gain)/ Loss |
33.022 |
25.662 |
(8.049) |
|
Profit/ Loss from
Ordinary Activities after Finance costs but Exceptional item |
535.362 |
819.733 |
2106.392 |
|
Exceptional
item |
-- |
-- |
-- |
|
Profit/ Loss from Ordinary Activities before
tax |
535.362 |
819.733 |
2106.392 |
|
Tax Expenses |
188.274 |
266.789 |
720.950 |
|
Net Profit/ Loss from Ordinary Activities
after tax |
347.088 |
552.944 |
1385.442 |
|
Extraordinary
Items |
-- |
-- |
-- |
|
Net Profit for the period |
347.088 |
552.944 |
1385.442 |
|
Paid- up
Equity Share Capital (Face value
of the share – Rs. 5) |
136.109 |
136.109 |
136.109 |
|
Reserves
excluding revaluation reserves as per balance sheet of Previous Accounting
Year |
-- |
-- |
-- |
|
Earnings per
share -
Basic |
2.55 |
4.07 |
10.20 |
|
- Diluted |
2.52 |
4.02 |
10.07 |
|
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. Public
shareholding |
|
|
|
|
Number of
Shares |
56388970 |
56388970 |
56388970 |
|
Percentage of Shareholding |
41.43 % |
41.43 % |
41.43 % |
|
2. Promoters
and promoter group shareholding |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
- Number of Shares |
Nil |
Nil |
Nil |
|
- Percentage of Shares (as a % of the Total Shareholding of promoter
and promoter group) |
0% |
0% |
0% |
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
0% |
0% |
0% |
|
|
|
|
|
|
Non - encumbered |
|
|
|
|
- Number of
Shares |
79720110 |
79720110 |
79720110 |
|
- Percentage
of Shares (as a % of
the total shareholding of promoter and promoter
group) |
100% |
100% |
100% |
|
- Percentage
of Shares (as a % of
the total share capital of the company) |
58.75% |
58.75% |
58.75% |
|
|
Particulars |
|
|
B |
Investor complaints |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
14 |
|
|
Disposed of during the quarter |
14 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
Notes
1
The above financial results were reviewed and recommended by the Audit
Committee of the Board and approved by the Board of Directors at their meeting
held on 12.02.2014
2
The Statutory auditors of the Company have carried out a limited review of the
results.
3During
the quarter ended 30th June 2011, the Company had competed transaction for sale
of its polymer compounding business on slump sale basis as a going concern and
gain of Rs. 303.428 Millions is shown under Exceptional item in the previous
half year ended 30th September 2011 and year ended 31st March 2012.
4
The Company had adopted the principle of hedge accounting in the previous year
as set out in 'Accounting Standard 30 - Financial Instruments Recognition and
Measurement' issued by the Institute of Chartered Accountant of India to
implement the foreign exchange risk management policy under which the net
foreign exchange exposure over a period of one year against the committed order
in hand, is hedged through forward contracts. Accordingly marked to market gain
of Rs. 82775Millions arising on foreign currency instruments qualifying for
hedge accounting as on 31st December 2013 has been transferred to Cash
Flow Hedge Reserve Account which has reduced the amount of loss to Rs. 21.685
Millions as on 31st December 2013.
The
previous period's figures have been regrouped/ rearranged/ reclassified wherever
necessary.
CONTINGENT LIABILITIES
(Rs. in millions)
|
Disputed Taxation demands not acknowledged as debts: |
31.03.2013 |
31.03.2012 |
|
-Sales Tax |
12.813 |
17.641 |
|
- Excise Duty |
8.499 |
8.499 |
|
- Income Tax |
53.642 |
24.306 |
|
- Custom Duty |
7.108 |
7.108 |
|
-ESI |
0.508 |
-- |
|
Anti-Dumping Duty |
23.044 |
23.044 |
|
Counter Guarantee to GIDC |
3.285 |
3.285 |
|
Bill Discounted |
317.114 |
-- |
FIXED ASSETS
Ø Land
Ø Building
Ø Plant and
Machinery
Ø Furniture and
Fixtures
Ø Office Equipments
Ø Vehicles
Ø Library
Ø Tools and
Equipments
PRESS RELEASE
PI Industries sustains high growth
9M FY14 PAT up 89% at Rs. 1385.000Millions
Domestic business delivers
sustained outperformance over sector growth rates and strong ramp-up in exports
continues in-line with plan
Gurgaon, February 13, 2014: PI
Industries Limited (PI), a leading Indian Agri-Input and Custom Synthesis
company announced its financial results for the quarter and nine-months ended
December 31, 2013.
Financial and Operational Commentary for the quarter and
nine-months ended 31st December, 2013
(Rs. In Millions)
|
|
Q3
FY14 |
Growth (%) (Y-o-Y) |
9M
FY14 |
Growth (%) (Y-o-Y) |
|
Revenues |
3634.000 |
29 |
12322.000 |
50 |
|
EBIDTA |
62700 |
38 |
2337.00 |
69 |
|
PAT |
34700 |
45 |
138500 |
89 |
Net
Revenue
Domestic
revenues remained on trend, growing 22% over 9M FY13. Volume growth was aligned
with a marginal price increase in select products. The robust sales performance
was driven by PI’s superior product stewardship and its strong brand
positioning across the portfolio. A good spell of rainfall combined with higher
acreages during the Rabi season provided support.
Exports delivered continued growth at 83% in 9M FY14,
essentially given the larger base of last year, while the natural growth in the
commercialized molecules continued in-line with our plan. The medium to
long-term outlook remains positive as the Company is focused on creating a
pipeline of products with excellent prospects and high visibility.
EBITDA
The
margins for Q3 FY14 came in at 17.3% as against 16% last year. As the business
acquires greater scale a consistent focus on keeping costs under check in an
inflationary environment and prudential forex policies will augment this
growth.
Pre-tax
Earnings
The
revenue momentum has translated into a substantial upmove in the Profit Before
Tax. The overall emphasis on better working capital management and reduced
interest outgo is driving the quality growth. In Q3 FY14 the PBT stood 49%
higher at Rs. 535.000Millions
Post-tax
Earnings
Profit
After Tax grew by 45% to Rs. 347.000Millions in Q3 FY14. The resultant Basic
EPS was at Rs. 2.6 per share from Rs. 1.9 per share last year.
Strong
balance sheet
The
Company’s balance sheet as on December 31, 2013 stood strong and was further
augmented by robust Profit and Loss . Compared to March 31, 2013; the Company
reduced its Net Debt to ~Rs. 95 crore bringing down debt equity ratio to
<0.15. Overall working capital turns have also improved with net working
capital (NWC) reduced from ~83.5 days for FY2013 to ~68 days for the 9 months
period ended on 31st Dec, 13. The cash flows remain robust and the Company is
in comfortable position to drive its future growth plans.
Interim
dividend
The
Board declared an interim dividend of 50% (Rs.0.50 per equity share of Rs. 1
each) which will result in payout of Rs. 79.200Millions including dividend
distribution tax.
Commenting
on the performance Mr. MayankSinghal, Managing Director and CEO, PI Industries
Ltd., said;
“What allows to consistently outperform is the
unique business model. PI benefits from a premium portfolio of products across the
domestic and export operations.
In domestic business are driving success through
bringing in newer products, which are providing excellent value proposition to
the Indian farmers and improving their productivity. In order to convert these
concept products to big brands, they are closely working with the channel
partners and farmers with focus on sharing modern technologies and harnessing
information technology to enhance productivity. During the current crop season they
had the additional benefit of a favourable water level in the reservoirs,
increased acreages for Rabi YoY and lastly rich MSPs.
On the exports front the salient partnerships have
in place with sustained respect for IPR, are delivering and as the molecule
attains global acclaim, there is a corresponding volume multiplier that stand
to benefit from. This has been playing out across the variety of molecules have
in portfolio and will underline those in the pipeline.”
Outlook
Given the favourable agro-climatic conditions, growth should
sustain at present levels backed by PI’s robust product presence in the
domestic market.
CSM
Exports will continue to grow inline with robust outlook of existing
high-quality portfolio of molecules. Commercialization of few more products in
Q4/Q1, 15 will further drive the growth.
About PI Industries Ltd. (PI)
Incorporated
in 1947, PI Industries (BSE: 523642, NSE: PIIND, ISIN ID: INE603J01030) focuses
on Agri-Input and Custom Synthesis with strength of over 1,400 employees, PI
Industries currently operates three formulation and two manufacturing
facilities as well as five multi-product plants under its three manufacturing
locations across Jammu and Gujarat. These state-of-art facilities have
integrated process development teams with in-house engineering capabilities. PI
Industries is into the following segments:
Domestic Agri-Input
PI is
one of India’s leading players in the Agri-Input industry, primarily dealing in
agro-chemicals, specialty fertilizers, plant nutrients and seeds. This venture
is the flagship business for which PI enjoys tremendous brand recognition
across several industry leading products. The Company has exclusive rights with
several global Corporations for distribution in India and is constantly
evaluating prospects to further expand its product portfolio. Given the
inevitable surge in demand for food grain production in the agriculture sector,
the opportunities for Agro-Chem Companies are innumerable. PI Industries is
favorably positioned to contribute to the growth in this space by leveraging
its long-standing association with business partners and intensive network of
distributors across India.
Custom Synthesis Exports
Here
PI focuses on Custom Synthesis, which entails dealing in custom synthesis and
contract manufacturing of chemicals including techno commercial evaluation of
chemical processes, process development, lab & pilot scale up as well as
commercial production. The Company has an impressive product portfolio as
result of exclusive tie-ups with leading agro-chemical, pharmaceutical and fine
chemical companies around the world. PI has made substantial investments in
building state of art process research and manufacturing facilities of chemical
intermediates and active ingredients with special focus on strong process
R&D capabilities. Custom Synthesis is expected to be the primary growth
driver with strong revenue visibility for P I as India continues to be a
preferred destination for outsourcing Custom Synthesis and contract
manufacturing related projects. With exceptional growth opportunities in the
offing, this segment is poised for great success.
PI
Industries sustains high growth
9M
FY14 PAT up 89% at Rs. 1000.000Millions
Domestic
business delivers sustained out performance over sector growth rate and strong
ramp-up in the exports continues in-line with plan
Gurgaon,
October 24, 2013: PI
Industries Limited (PI),a leading Indian Agri-Input and Custom Synthesis company
announced its financial results for thequarterandhalf
year ended September 30, 2013.
Financial
and Operational Commentary for the
quarter & half-year ended 30thSeptember, 2013
(Rs. In Millions)
|
|
Q2
FY14 |
Growth (%) (Y-o-Y) |
H1
FY14 |
Growth (%) (Y-o-Y) |
|
Revenues |
4628.000 |
55 |
8688.000 |
62 |
|
EBIDTA |
921.000 |
111 |
1710.000 |
84 |
|
PAT |
553.000 |
114 |
1038.000 |
111 |
Net Revenue
Revenues in the domestic business were robust given the quality of portfolio, good monsoon,
higher MSPs, increased acreages and better demand.
Domestic revenues grew by 23% in H1 FY14. The current year compares favourably
to the subdued monsoon of last year which moderated sector growth. Therevenue
performance endorses the quality of business created by PI in terms
of products, marketing and distribution
and business practices.
Revenues from exports were buoyant, in-line
with plan given the sustained ramp-up in production
of existing molecules and commercialization of new molecules Export revenues
grew by ~125% in H1 FY14.
Jambusarhas shown a strong scale-up contributing to this growth. EBITDA The margins for
Q2 FY2014 were at~20% compared with ~15% for
Q2FY 2013 and were ~20% for H1FY 2014 as
compared to~17%inH1FY2013. The overall margin performance benefitted fromstrongrevenuegrowth, better costmanagement
andsystematic forex management. Moreimportantlythemargins
reflect the highquality revenues where
the Companyis focused on respect for IPandhas deep
managements basedontrustandDeliveryacrossallclients.
EBITDA
The
margins for Q3 FY14 came in at 17.3% as against 16% last year. As the business
acquires greater scale a consistent focus on keeping costs under check in an
inflationary environment and prudential forex policies will augment this
growth.
Pre-tax
Earnings
The
revenue momentum has translated into a substantial upmove in the Profit Before
Tax. The overall emphasis on better working capital management and reduced
interest outgo is driving the quality growth. In Q3 FY14 the PBT stood 49%
higher at Rs. 535.000Millions
Post-tax
Earnings
Profit
After Tax grew by 45% to Rs. 347.000Millionsin Q3 FY14. The resultant Basic EPS
was at Rs. 2.6 per share from Rs. 1.9 per share last year.
Strong
balance sheet
The
Company’s balance sheet as on December 31, 2013 stood strong and was further
augmented by robust P&L. Compared to March 31, 2013; the Company reduced
its Net Debt to Rs. 950.000Millions bringing down debt equity ratio to
<0.15. Overall working capital turns have also improved with net working
capital (NWC) reduced from ~83.5 days for FY2013 to ~68 days for the 9 months
period ended on 31st Dec, 13. The cash flows remain robust and the Company is
in comfortable position to drive its future growth plans.
Commenting
on the performance Mr. MayankSinghal, Managing Director & CEO, PI Industries Ltd. ,said;
“theyaredelightedtopresentanexcellentofnumbersyetagain.theyhavebuiltasolidoperatingmodelacrossthe
domestic andexportsbusinesseswheretheyhavevisibilityforsustainedprogress.Whilethedomesticbusinesscontinuestoperformaheadofsectorgrowththeyexpectthistrendtosustaingiventhequalityoftheportfolio,businesspracticesanddeeppan--‐Indiamarketpresence.theexportssustainedacceleratedramp--‐upastheeffortsaninvestmentsputoverthelastfewyearsfructify.Iamproudtosaythatwehavebuiltstrongpartnershipswiththevaluedcustomersthe
tisdeliveringstrategicvaluetobothofus.Hereagainthreatof commercialized moleculesareincreasingandthey
arewineasingstrongandconsistentgrowth.TheJambusarSEZfacilityisanadditionaltrigger
Thatwillkeepsupportinggrowth.They areenthusedbytheuptakeinthefirstphaseandtheyhaveinitiatedthenextphasethatwillbe
implemented overthe coming fewquarters.”
Outlook
Giventhestrongsouthwestmonsoonandhealthyreservoirsituation,theyareoptimisticabout
continuedgrowthinthedomesticagribusinessintheforthcomingRabiseason.
CustomSynthesisbusinessisoncoursetoattainconsistentandsuperior
growthgoingaheadonthebackofstrongramp--‐upinexistingmoleculesandcommercializationofnewmolecules
PI
Industries receives the ‘Best Supplier’ award at Agrow Awards 2013
Nominated for ‘Best Marketing Campaign’ for Nominee
Gold
Gurgaon,
November 09, 2013: PI Industries Limited (PI), a leading
Indian Agri-Input and Custom Synthesis company was bestowed with the ‘Best
Supplier’ award for its Fine Chemicals exports at the Agrow Awards 2013
held at Amsterdam, the Netherlands recently.
PI was
also nominated under the category of ‘Best Marketing Campaign’ where it
shared nominations with BASF Corporation, Arysta LifeScience and Dow
AgroSciences amongst others.
The
Agrow Awards are recognized as a significant achievement amongst the global
crop protection industry and have been instituted since 2008. The recognition
provided by Agrow Awards reaffirms PI as a significant player in the global
agrochemicals industry. PI enjoys a unique and differentiated positioning in
the crop protection space based on its respect for IPR and relationships with
global innovators.
In the domestic market the
Company enjoys a premium positioning based on its brand building capabilities,
robust distribution network, unique delivery mechanism and sharp marketing
& communication initiatives.
In the custom synthesis exports, PI focuses on
early-stage partnerships with innovators where it acts as ‘the preferred’
supplier. Here, PI has the ability to handle complex chemistries, to synthesize
& scale-up the process within short span of time, to ramp up capacities at
short notice and to supply high quality product on consistent basis.
Commenting
on the development Mr. MayankSinghal, Managing Director & CEO, PI
Industries Ltd., said;
“they are very pleased to receive the ‘Best
Supplier’ award in the fine chemicals exports category at the Agrow Awards.
This is the recognition of hard efforts put in by theteam in achieving high
levels of customer satisfaction. With respect for IPR deeply ingrained in its
DNA, I feel PI has always stood tall in a highly competitive marketplace for
agrochemicals. Thanks to a clear vision early-on and consistent delivery of
superior performance in both focus markets of domestic agri-inputs and custom
synthesis exports, they have set high expectations for ourselves. With the
visibility afforded by the key drivers of businesses I am confident that PI is
poised to scale greater heights.”
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.94 |
|
|
1 |
Rs.103.31 |
|
Euro |
1 |
Rs.85.11 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
- |
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--EPF |
YES/NO |
NO |
|
--RBI |
YES/NO |
NO |
|
TOTAL |
|
64 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.