PI Industries - Superior Business Model

Another strong set of results, revenue grew by 16%. Margins were impacted due to raw material price inflation (seen across agchem players). Here are my short notes from their concall.

  • Gross margin impacted due to higher commodity prices and lower export incentives (the impact will be even more visible in Q4) despite favorable product mix
  • 9MFY22 :New client addition: 8, new CSM product launches: 4 (3 planned in Q4)
  • Have maintained higher inventory to avoid supply chain problems, managed to satisfy 98% of customer needs
  • Focus is on improving flow chemistry processes to enhance capital efficiency of the business (basically become more capital light thus higher ROCE)

Disclosure: Invested (position size here)

6 Likes