PI had a softer quarter, with sales growing by 11% and EPS by 32%. They are guiding for 15% sales growth in FY25 with similar margins but higher tax rates which might keep EPS muted in FY25. Besides that, they have grown very well in this downturn and have clearly differentiated themselves from other agchem/chemical cos. Concall notes below.
FY24Q4
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Targeting 15% sales growth in FY25 and higher growth (18-20%) starting FY26; 49-50% gross margins and 26% EBITDA margins
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70% of CSM growth in FY24 came from new molecules commercialized in past 3-years
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New products: 7 (domestic), 6 (CSM); 8-10 in CSM in FY25
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6% revenue drop in domestic agchem in FY24 (29% growth in biologicals)
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Higher tax rate in FY25 (24%)
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Weaker pharma revenues due to deferral of customer orders (315 cr. vs 563 cr. In FY23). Investments will happen for the next 1.5 years after which EBITDA margins will increase
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FY24 capex : 1080 cr. (including 490 cr. for pharma acquisition); Plan 800 cr. In FY25
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Order book increases to $1.75bn
Disclosure: Invested (position size here, no transactions in last-30 days)