PI Industries Limited

31%

quarters and delivered a strong performance in Q2 FY23. We have achieved overall revenue growth of 31% on a high base of last year, EBITDA has grown by 49% and net profit has increased by 46% on a year

49%

. We have achieved overall revenue growth of 31% on a high base of last year, EBITDA has grown by 49% and net profit has increased by 46% on a year- on-year basis. There was strong demand for our cro

46%

growth of 31% on a high base of last year, EBITDA has grown by 49% and net profit has increased by 46% on a year- on-year basis. There was strong demand for our crop protection products during the rob

1.8 billion

there has been an uptick in order book position. We are proud to announce an order book of around $1.8 billion,. There is traction from the new inquiries, particularly for products in the non-agchem space. We

INR 17,700 million

d refer to the consolidated performance of the company. During Q2 FY23, we reported a revenue of INR 17,700 million, a growth of 31% over the same period of the last year. This was driven by growth in exports reve

29%

wth of 31% over the same period of the last year. This was driven by growth in exports revenue by 29% to INR 12,783 million and 36% increase in domestic revenue to INR 4,917 million. The export revenu

INR 12,783 million

31% over the same period of the last year. This was driven by growth in exports revenue by 29% to INR 12,783 million and 36% increase in domestic revenue to INR 4,917 million. The export revenue growth of 29% was dr

36%

od of the last year. This was driven by growth in exports revenue by 29% to INR 12,783 million and 36% increase in domestic revenue to INR 4,917 million. The export revenue growth of 29% was driven by

INR 4,917 million

by growth in exports revenue by 29% to INR 12,783 million and 36% increase in domestic revenue to INR 4,917 million. The export revenue growth of 29% was driven by volume growth of around 25%, coupled with favorabl

25%

venue to INR 4,917 million. The export revenue growth of 29% was driven by volume growth of around 25%, coupled with favorable price and currency of around 4%. Domestic revenue growth of 36% was mainly

4%

9% was driven by volume growth of around 25%, coupled with favorable price and currency of around 4%. Domestic revenue growth of 36% was mainly driven by volume growth of approximately 31% and price

5%

growth of 36% was mainly driven by volume growth of approximately 31% and price increase of around 5%. New innovative Agri brands launched recently also contributed to this growth. The trend in elev

“After that, the forum will be open for question-and-answer session.”

“India's approach to looking at the backward integration across all sectors will be a strong asset.”

“We plan to continually introduce brands with a pipeline of over 17 more innovative products in different stages of development and registration.”

“It's good to hear that you have increased the Capex guidance to INR 700 crore from INR 650 crore in the last quarter.”

“And also keep in mind that our asset turns on a trailing 12- month basis is already 2.4x, and in the first half of the year we have spent just about 20% of the annual Capex guidance, if you can dwell a little bit on this it would be great.”

“Going forward, the company is putting more efforts and experiences, more areas in this front to drive capacity announcements with low capital investments.”

“And if you think about the acquisition that we have been talking about, a large part of the acquisition would be far marking about, say, 70%, 75% of the funds will be deployed.”

“And if you've seen our commentary earlier, we have said, yes, we will be increasing the asset turn based on better asset utilization by improving efficiency.”

“But yes, there are still many such initiatives, which are in the process of fine-tuning execution and many of them will get executed and also reflecting in our next quarter's and year's growth as it comes.”

“And finally, the EBITDA margin guidance given you have done a good number?”

Mayank Singhal

17

Moderator

4

Rajnish Sarna

3

Manikantan Viswanathan

2

Ankur Periwal

2

Rohit Nagraj

2

Nitin Agarwal

2

Nishid Solanki

1

Vishnu Kumar

1

Abhijit Akella

1

Nishid Solanki

Ladies and gentlemen, good day and welcome to the Q2 FY23 earnings conference call of PI Industries Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing “*” then “0” on your touchtone phone. I now hand the conference over to Mr. Nishid Solanki from CDR India. Good afternoon, everyone, and thank you for joining us on PI Industries’ Q2 FY23 earnings conference call. Today, we are joined by senior members of the management team, including:  Mr. Mayank Singhal, Executive Vice Chairman and Managing Director  Mr. Rajnish Sarna, Joint Managing Director  Mr. Manikantan Viswanathan, Chief Financial Officer  Mr. Prashant Hegde, CEO Domestic and  Mr. Atul Gupta, CEO Exports. We will begin to call with key perspectives from Mr. Singhal. After that, we will have Mr. Manikantan sharing h

Mayank Singhal

Welcome, everyone and thank you for your participation today. I'm happy to report that PI has built on the growth momentum sustained over the last few quarters and delivered a strong performance in Q2 FY23. We have achieved overall revenue growth of 31% on a high base of last year, EBITDA has grown by 49% and net profit has increased by 46% on a year- on-year basis. There was strong demand for our crop protection products during the robust Kharif season. The agriculture sector is buoyant driven by higher price PI External realization, normal monsoon and healthy reservoir levels. Our newly launched products are getting good traction and acceptance across all crops. The outlook for Rabi season looks very promising, and we are expecting the domestic segment to achieve strong growth. The opportunity in the agchem worldwide is apparent and PI with a differentiated model is in a position to create value with its unique strong technological capabilities that puts us in the lead. The challenge

Manikantan Viswanathan

Thank you, Mr. Singhal. Good afternoon, everyone, and thank you for joining us on the call today. I'll be summarizing the financial highlights of the Company for the second quarter ended 30th September, 2022. Please note that all the comparisons are on a year-on-year basis and refer to the consolidated performance of the company. During Q2 FY23, we reported a revenue of INR 17,700 million, a growth of 31% over the same period of the last year. This was driven by growth in exports revenue by 29% to INR 12,783 million and 36% increase in domestic revenue to INR 4,917 million. The export revenue growth of 29% was driven by volume growth of around 25%, coupled with favorable price and currency of around 4%. Domestic revenue growth of 36% was mainly driven by volume growth of approximately 31% and price increase of around 5%. New innovative Agri brands launched recently also contributed to this growth. The trend in elevated input costs continued during this quarter and half year, although w

Mayank Singhal

The company maintained its strong liquidity position with a surplus cash net of ECB of INR 23,211 million, including accretive proceeds. That concludes my opening commentary. I will now request the moderator to open the forum for Q&A. Thank you. We have the first question from the line of Aditya Jhawar from Investec. Please go ahead. It's good to hear that you have increased the Capex guidance to INR 700 crore from INR 650 crore in the last quarter. Is this increase sufficient to take care of the increase in the order book, which increased by almost 30% in this quarter? And also keep in mind that our asset turns on a trailing 12- month basis is already 2.4x, and in the first half of the year we have spent just about 20% of the annual Capex guidance, if you can dwell a little bit on this it would be great. Thanks Aditya for the question. As you know, we are a technologically focused organization. I think the company has done a great job in the first half of the year. We've been able to

Rajnish Sarna

Absolutely. A final question is with this order book accretion of $400 million, what could be the share of non-agrochem and in our revenue also, what is the current share of non-agrochem? Yes. It's not significant at this moment. The major increase in order book comes from some of our existing products, which we have been doing and which we have also launched in last few years. So, there is certainly a ramp up in the long-term demand of these products. The non-agchem products, as we have also guided in the past that they have been at a very initial stage of their commercialization at our end. So, some of these products are commercialized, say, in last couple of years, and many of them are still at R&D scale and pilot scale and getting to commercialization in the next few years. And in this kind of business model, the volumes and values of these non Agchem products at the initial stage are not very significant. We have our next question from the line of Ankur Periwal from Axis Capital.

Ankur Periwal

Okay. So, this is the broad range that is maintained, is it? Yes. On an annual basis and not for a specific quarter, Fair enough. And sir, lastly, on the Capex front, you did allude towards technology-led initiatives, which should enhance the asset turn further. Are most of those benefits now already in? Or do you believe there is further scope for improvement here, which basically means that the intensity of PI External