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PIIL:SEC:PR:2020-21 August 4, 2020
BSE Limited,
Corporate Relationship Deptt. 25th Floor, New Trading Ring Rotunda Building
P.J. Towers, Dalal Street, MUMBAI - 400 001
Code No.523642
Dear Sir,
National Stock Exchange of India Ltd. Exchange Plaza, Plot No.C/1, G-Biock, Bandra Kurla Complex; Bandra (East), Mumbai - 400 051
Code No.PIIND
lnSilired by Science
Sub: Press Release on Performance of the Company for the quarter ended June 30, 2020.
We are enclosing herewith a copy of Business Performance update dated August 4, 2020 on the performance of the Company for the quarter ended June 30, 2020.
Please arrange to upload the same on your web site at the earliest.
Thanking you,
Yours faithfully, For PI Industries Ltd.
Encl: As above.
PI Industries Ltd.
Corporate Off. : 5th Floor, Vipu l Square, B-Biock, Sushant l ok Phase-1, Gurugram - 122009, Haryana (India). Tel.: +91124 6790000, Fax : +91124 4081247 Regd. Off.: Udaisagar Road, Udaipur-313001, Rajasthan (India) Tel.: +91 294 2492451-55, Fax: +91 294 2491946, 2491384 Email: [email protected], www.piindustries.com, CIN: l 24211RJ1946PLC000469
Certainstatementsmadeinthispresenta.onmaynotbebasedonhistoricalinforma.onorfactsandmaybe“forwardlookingstatements,”includingthoserela.ngtogeneralbusinessplansandstrategyofPIIndustriesLimited(“PIIL"),itsfutureoutlookandgrowthprospects,andfuturedevelopmentsinitsbusinessesanditscompe..veandregulatoryenvironment.Actualresultsmaydiffermateriallyfromtheseforward-lookingstatementsduetoanumberoffactors,includingfuturechangesordevelopmentsinPIIL'sbusiness,itscompe..veenvironment,itsabilitytoimplementitsstrategiesandini.a.vesandrespondtotechnologicalchangesandpoli.cal,economic,regulatoryandsocialcondi.onsinIndia.Thispresenta.ondoesnotcons.tuteaprospectus,offeringcircularorofferingmemorandumoranoffer,orasolicita.onofanyoffer,topurchaseorsell,anysharesandshouldnotbeconsideredasarecommenda.onthatanyinvestorshouldsubscribefororpurchaseanyofPIIL'sshares.Neitherthispresenta.onnoranyotherdocumenta.onorinforma.on(oranypartthereof)deliveredorsuppliedunderorinrela.ontothesharesshallbedeemedtocons.tuteanofferoforaninvita.onbyoronbehalfofPIIL.PIIL,assuch,makesnorepresenta.onorwarranty,expressorimplied,asto,anddoesnotacceptanyresponsibilityorliabilitywithrespectto,thefairness,accuracy,completenessorcorrectnessofanyinforma.onoropinionscontainedherein.Theinforma.oncontained in thispresenta.on,unlessotherwisespecified isonlycurrentasof thedateof thispresenta.on.PIILassumesno responsibility topubliclyamend,modifyor reviseany forward lookingstatements,on thebasisofanysubsequentdevelopment,informa.onorevents,orotherwise.Unlessotherwisestatedinthisdocument,theinforma.oncontainedhereinisbasedonmanagementinforma.onandes.mates.Theinforma.oncontainedhereinissubjecttochangewithout no.ce and past performance is not indica.ve of future results. PIILmay alter,modify or otherwise change in anymanner the content of this presenta.on,without obliga.on to no.fy any person of such revision or changes. Thispresenta.onmaynotbecopiedanddisseminatedinanymanner.
THEINFORMATIONPRESENTEDHEREISNOTANOFFERORSOLICITATIONOFANYOFFERTOPURCHASEORSELLANYEQUITYSHARESORANYOTHERSECURITYOFPiINDUSTRIESLTD.
PIIndustriesLtdBusinessPerformanceUpdate
Q1FY2020-21
CDRIndia
Tel:+912266451221/1209Fax:+912266451213
PIIndustriesLimited
Tel:+911246790000Fax:+911244081247
1
Out-performanceconQnuesinspiteofCovid-19challenges….RevenueUp41%,EBITDAUp55%andPATUp43%,YoY
FiginCrores Q1FY20 Q1FY21 %YOY
Revenue 754 1060 41%
GrossMargin 45% 42% (280)Bps
FixedOverheads 185 216 -17%
EBITDA 153 236 55%
EBITDAas%Revenue 20% 22% 140bps
NetProfit 102 146 43%
ü Revenuesgrewby~41%YoYdespiteCovid-19disrupAonstooperaAonsandmovementofgoodsduringiniAalphaseofQ1
ü Exports increased ~23% YoY drivenmainly by proacAve rawmaterialinventory management and capacity planning. Demand for keycommercialised molecules remains strong. Shipments have gainedmomentum
ü DomesAc revenues up by 76% YoY, contributed by carryover demandfrom Q4’FY20, Isagro brand sales and robust momentum in thedomesAcsegmentonplannedbrandposiAoningtoavailadvantageofearlysowing
ü Both domesAc and export supplies have picked up pace with allmanufacturing faciliAes being operaAonal and capacity uAlisaAon isbuildingbacktopre-COVIDlevels
ü ContribuAon from Isagro further enhanced during the quarter. ~13%growthcontributedbyIsagroAsia,amarkofgoodbeginning
ü 280basisdropingrossmarginduetochangeinbusinessmixofExport,DomesAcandIsagro
ü ControlonoverallfixedoverheadhelpedinimprovingEBITDAMargin
ü Net Profit upsurge with higher momentum in topline , depreciaAoninlinewithcapaciAesaddedincreasedfromRs.29CrtoRs.43Cr.
CONSOLIDATED
501
253
614
446
EXPORTS DOMESTIC
Q1FY20 Q1FY21
76%
153
102
236
146
EBITDA PAT
Q1FY20 Q1FY21
23% 43%
• FY20figuresincludes3monthsdataofIsagroAsiaacquiredinDec,2019 • AllFiguresareinCrores
55%
2
(RsinCrores) JUN20 JUN19Shareholders'Funds 2,789.5 2,391.9NonCurrentLiabiliQes 598.6 49.9Long-termborrowings 468.7 0.0Deferredtaxliabili.es 26.0 -Otherlong-termliabili.es 75.1 19.2Long-termprovisions 28.8 30.7CurrentLiabiliQes 1,390.3 962.5Short–termBorrowings 42.7 39.2Tradepayables 921.5 544.5Othercurrentliabili.es 396.7 365.9Short-termprovisions 29.3 12.9TOTAL 4,778.4 3,404.3NonCurrentAsset 2,226.0 1,595.8NetFixedAsset 2,076.8 1,517.4Goodwill 82.8 -Non-currentinvestments 7.0 7.0LongtermLoans&advances 6.1 3.7OtherAssets 53.4 67.6CurrentAsset 2,552.4 1,808.6Inventories 948.4 588.4Tradereceivables 830.5 775.9CashandBankBalances 609.1 172.0Short-termloansandadvance 29.7 44.2Otherassets 134.6 228.1TOTAL 4,778.4 3,404.3KEYRATIOSNetsalestoFixedassets 2.04 1.99NetSalestoWorkingcapital 4.95 3.68NetSalestoInventory 4.47 5.31Currentra.o 1.84 1.88DebtEquityra.o 0.18 0.02
BalanceSheetposiQonfurtherstrengthenedEfficientW/CmanagementresulQnginfreecashflowgeneraQon
• FreeCashflowgenera.onsofRs.298Crs(7%ofrevenue) thru bejer working capitalmanagement. Increase in opera.ng cash flowhelpingfundcon.nuedstrategicini.a.ves
• Net working capital to sales improved from3.68 to 4.95 as at Jun’20 despite Covid-19disrup.onandresultantliquiditychallengesinthemarkets
• Increased inventory levels to securi.zecon.nuity of opera.ons amid Covid-19uncertain.es
• Moved back to surplus cash posi.on… Cashavailable (netofdebt) at Rs.98Crs on30thJun’20
• NetsalestofixedAssets improvedto2.04Vs.1.99PY
3
KeyoperaQonalhighlightsQ1’FY21PlannedprogressonstrategiciniQaQvesforsustainedgrowth..
• HighesteverplacementofNomineeGold.Successfulexecu.onoftankmixsolu.ons.
• LaunchofPIMitra,digitalcampaignslikeAwkiraHarvestDays,SonePeSuhaga,DigitalChannelPartnerMeet,Etc
GoodstartofDomesQcAgriInput
• Successfullyscaledupandsuppliedini.alquan..esofCovidintermediate• GradualcapacityrampupofnewMPPcommissionedlastquarter.• Produc.onalmostatpre-covidlevel• Coviddelayedtheregulatoryclearance,expectedtore-startproduc.onin
MPP5shortly.
SuccessfulScaleupofCovidIntermediate&Capacityramp-upfornewMPPs
• Order&Inventorymanagementtoolrolledouttoensureonlineconnectwithchannelpartner
• Variousini.a.vestakentoconnectwithfarmersandchannelsthroughsocialnetworkmarke.ng
DigitalisaQonandprocessimprovement
• 7newpatentapplica.onfiledduringQ1’FY21includingintermediaryofcovid19.IPRCreaQon
4
PIEXTERNAL
5
Overwhelming response to QIP issue ...... . Inspired by Science
''I am glad that we have received an overwhelming response from the investor community, especially in the midst of ongoing disruptions posed by the pandemic. This showcases investors' trust in growth-oriented approach of PI Industries., 7 Mayank Singhal Vice Chairman and MD PI Industries Ltd.
Businessoutlookremainsrobust..FocusedprogressonstrategiciniQaQvestoconQnuewhilenavigaQngthrough
• GoodprogressofoverallSouth-WestMonsoon…• Con.nuetohaverobustdemandforbrandedproductstodrivegrowth• Expecttolaunch2newproductsinQ2/Q3
FocusonDemandgeneraQonandnewproductlaunches
• Globalcustomerscon.nuingposi.vecommentary;nochangeindemandoutlook
• VolumeScaleupexpectedforsomeoftheproductscommercializedinlast1-2years.
• PromisingproductsinR&Dpipeline,gradualrampupinprogress.• Orderbookremainedrobust@~US$1.5Bn;highvisibilityofsustainablegrowthover3-5yrs
CSMExportstoconQnuegrowthmomentum
• SuccessfullycompletedQIPprocess• Aggressivelypursinginorganicgrowthopportuni.estodiversifyintoadjacencies,widentechnologyporwolioandde-riskopera.ons
• Dedicateddealteamformedtoruntheprocessin.meboundmanner
StrategicdirecQonandprioriQesremainintactwhilecarefullytransiQoningthrough
Covid-19uncertainQes
Confidentofachieving20%plusgrowthinFY21assuminggradualnormalisaQonofCovid-19curve6
INNOVATIONEnlivening,liketheair,inthe
constantquestforthehorizon,thenever-endingsearchforabener,newer
waytodothings;InnovaQon,forus,isawayoflife
ADAPTABILITYAdapQve,likewater,weareconstantlytransformingourselves.Beingnimblefooted,wearehighlyresponsivetochange
TRUSTLiketheearth,weare
dependable.Weworkwithintegrityofpurpose,honestyinacQonandfairnessinallour
dealings
VISION “BuildingonthefoundaQonoftrust,weshallbeattheforefrontof
science-ledopportuniQesbydeliveringinnovaQvesoluQons.”
VALUES
SPEEDBlazingahead,likefire,we
constantlystrivetoworkwithspeedinthewayweobserve,
thinkandact
OurVision&Values..
7
Quality• ObjecQvetobehigh
qualityproducer• Controlallprocesses
thatimpactqualityoftheendproduct
Throughput• Ensureconsistent,
reliabledelivery• ConQnuous
de-bonlenecking• AutomaQon
Environment&Safety
• Tosetbenchmarks• Addressatsource• Safetyfirstculture
InnovaQon• ProtectandbuildIP
Efficiency• Targetdriven• Ownershipatsub-
funcQonallevel
CustomerNeeds BusinessStrategy
ConsistentQuality
SpeedofexecuKon,delivery
Real-Kmemonitoring&review
ConKnuousimprovementinnovaKvely
Reliable&Adaptable
CostCompeKKveness
Discovery Development EvaluaQon&TrialsScale-up Manufacturing MarkeQng&
DistribuQonRegulatoryservices&RegistraQons
GlobalExportBusiness-CSM DomesQcBusiness–Brands
StrongfocusoncustomerneedsandconQnuousinnovaQon
8
EvaluaQon&Trials
MarkeQng&DistribuQon
Regulatoryservices&RegistraQons
Farmers&ExtensiveDistribuQonNetwork28stockpoints;10K+distributors;70K+retailpoints
Morethan50yearsCreaQngMarketLeadingBrandsSignificantrevenuefromBrandsRankedNo1or2inthemarket,Somebrandsaremorethanadecadeold
DomesQcBusiness–Brands
StrongPipelineMoleculesbasedoncropsolu.onsandIndianneeds FOCUSON
INNOVATION
BENEFITSOFCROSSSELLING
OPPORTUNITIES
PROCUREREPEATBUSINESS
UNDERLYINGPRINCIPLESRESPECTFORIPDEVELOPMENT
REPUTATIONOFTRUST&RELIABILITYFORGERELATIONSHIP
• Extension&productdevelopment&stewardship(teamexperienceinhandlingcomplexnew-agepremiumchemistries)
• StrongrelaQonshipwithstakeholders
• PolicylevelbyparQcipaQon
StrongPartner40+yearsexperience20+GlobalInnovators
CropSoluQons Channel Enablers
Digi-tech@Core
Farmers
DifferenQateddomesQcdistribuQonDrivenbybrandsandmarketreach
• CropsoluQonapproachfocussingfarmer&usingICT(Informa.on,Communica.onandTechnology)
• OrganizaQonstructureempoweredwithdigitechtosupportanddemonstratevaluedeliverytofarmers
• OnlineanalyQcstoolsforfarmersandemployees• InnovaQveIdeasandbrandingforenhancing
productlifecycle• ExperienceofsuccessfullymanagingtransiQonof
productsfrompatentedtogeneric• ApplicaQonservicesfordevelopment&
engagement
EngagementEfficiencyExcellence
9
CustomSynthesis&Manufacturing–Ourvision
WhoNicheplayer/bou.queindustry–leadingsupplier
How• Longevityofmeaningfulengagement• Amarriageofcompetentequals• Consulta.vesolu.onrendering&outsourcing
process• Reliabilityofservices
In
• Technology• Process• Commercialopera.ons• Supplychaincustomer• Endapplica.ons
SoluQons
OURFOCUS
Development Scale-up Manufacturing
GlobalExportBusiness-CSM
HighvalueLow-Midvolume
ProcesstechnologyComplexchemistry
IP(generaQon/protecQon)HighPotenQal
PIas1or1of2-3sources
Customerasinnovators
PartnerofChoice
ServiceLines
• Research&Development• Analy.calResearch&
Services• ProcessDevelopment• Engineering• ProcessScaleup• CommercialProduc.on
Characterizedby
• Specifica.onswithcontrol
limits• Reliability&predictability• Repeatability
Off-patent
Early-to-marketLate-to-market
On-patent
mature
On-patent
growing
Pre-launch
Focusontheearlystagenovelmolecules ConQnuousinnovaQonforprocessandoperaQonalimprovement.
KnowledgePartnership
PIhasallthatisrequiredtobethe
“PartnerofChoice”
TobethelifelongPartnerofChoicefortheGlobalChemicalsIndustrybybuildinginnovaQve,knowledgebasedsoluQonsthroughspeed,efficiency,straighvorwardness&justdealings,respectforintellectualproperty,society&environment
10
GlobaltailwindsofferingopportuniQesforaggressive,mulQ-prongedgrowthstrategy
Exploreandexploituntappedchemistryareas
GolowoncapitalInvestment
Customer-centricapproach
IPDerisk&Create
OrganicGrowSmart
BuildCustomerInKmacyProduct&services
InorganicValuecreaKon
Inorganic…• ValueaddedTechnolgy• ProductsAssets• Nichever.calwithafuture
Pharma/Specialtychemical• Highgrowthapplica.onareas
havingsynergy• Disrup.vetechnologiesin
chemistry&processengineering
Market• Expansion• Crea.on• Segments• Opera.onexcellence• Brands
• Asset• Customerrela.onshipManagement• Process• CustomersValue-chain― AddProducts― Digi.za.on― Strategic.eups
Create…• ProcessInnova.on• Biologicalprocess
development• Formula.onCombina.ons
withPartners• Newformula.ons-• DigitalCustomerengagement
Derisk…• Manufacturing
concentra.on• Newformula.onof
exis.ngproducts• Biological
Process• Chemistry• BlockBuilders• Processengg• Flow
Digital• Informa.onintegra.on• Decisiontools
DeepeningourtechnologicalcapabiliQes
toopennewhorizons..
PrudentfinancialmanagementinplacetoensurethatlongtermshareholdervaluecreaQonremainsattheheartofthestrategy…
11
Thank you
PIEXTERNAL