recent crop insurance scheme could help alleviate rural distress can help agri focussed cos
A report on PI
Going through the Annual Report and had concern about increasing Trade Receivables which have grown by more than 50%
Also debt outstanding for period exceeding more than 6 months from due date have gone up from 10 Crores to 32 Crores
This is a watchout for me
Has anyone looked at this point before?
PI conference call on Feb 16th 11 am
Dial in numbers : Primary 022 3938 1071 / 6746 8354
PI Industries Q3 FY16 results. Flattish but solid.
Financial Highlights -
- Revenue up by 1.2% YoY from 504.92 cr to 510.98 cr
- EBITA up by 7.9% YoY from 84.43 cr to 91.15 cr
- Net Profit up by 16.5% YoY from 62.22 cr to 72.53 cr (driven by lower tax by 18% from 29.16 cr to 23.85 cr)
is there any specific reason for employees benefits to go up by 34% compared to previous year?
This has been common for many companies. Its because of change in Bonus Act.
I would say it was a poor performance because of following reasons
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Last quarter press release comment “Custom synthesis exports have shown moderation in momentum during the quarter due to deferred off take schedule of customers, whereas full-year trajectory is expected to be maintained”
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New plants have come onstream.
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Allocation of ESOP to employees will also be included in this expenses?
Yes thats correct IMO
I think the results are pretty bad for several reasons:
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In Q2, they had said that their Q2 sales moved to Q3. If that was true and they did see Q2 sales moving into Q3 then Q3 has shown a negative growth.
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While players like Dhanuka showed up decent sales increase of 14% in their Agri Division, PI has no growth.
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Revenue split between Agri division and CSM is not there. so not very sure if CSM is really picking up or there are challenges.
Management knowing of poor results played smart in selling significant chunk of their shares earlier during the quater.
Wait for the result press release. It will be out in a day.
In Q2, they had said that their Q2 sales moved to Q3. If that was true and they did see Q2 sales moving into Q3 then Q3 has shown a negative growth.
Hopefully it may get answered on Feb 16th concall
Primafacie, Seeing at the margins, it seems CSM might have contributed well and agri segment might have been the culprit…however we need to wait for detailed press release which might be out soon…
@reacher
Subsidiary doesn’t contribute to the numbers significantly so whether you look at standalone or consolidated it doesn’t make meaningful difference.
Rgds.
Discl. - No Investment. No Holding.
Press statement out, still talking about “deferred procurement”
PI has posted press release for Dec 31, 2015 earnings:
http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/E7361520_171E_4F63_8B70_7820152A735C_204105.pdf
Net Profit for 9M Fy16 increased by 8% with domestic agri business contributing 3% and CSM business contributing 11% upside.
Q3 CSM growth was 9% which was moderated due to deferred procurement schedules from global customers - this is same as Q2. We’ll need to see what management has to say why it was deferred in this quarter as well.
Margins improved by 194 bps for 9M FY16 and 188 bps for Q3 FY16 - due to better mix of products and increased contribution of CSM.
Management, in their outlook mentioned about challenging environment however growth should be continuing from Jambusar plant.
We’ll need more details on utilization, order book growth for CSM, hopefully in the concall.
Disclosure: Invested
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Management guided for a strong H2 after a disappointing Q2, promoter’s sold sizable stake in mid-December by when they would have had a good knowledge of how the quarter is performing, rising debt levels (off balance sheet) - this seems interesting.
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did anyone attend the concall? please share if possible.
It would be definitely interesting to hear what the Management had to say during the con call. They have indeed sold a sizable chunk of stock - 6.65% during the last quarter. Additionally the FII’s have cut their share with existing MF holders increasing their stake. SBI Magnum Midcap Fund also seems to be a new entrant with a 2.4% stake. The stock in the meanwhile is coming down from its strong levels in the 600’s.
order book has increased to 790 mn that translates to round about 5500 cr , they have maintained their 15 to 20% growth in which csm share could be 18 to 20%
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I had high regard for pi management . Stake sale has reduced it .
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