PI INDUSTRIES Q2FY23 Earnings Call Highlights
Seen strong demand in domestic business.
There has been uptick in orderbook position in CSM Exports. Major growth coming from existing products, commercialised in last 3-4 years. Many non AgChem products still in Kilo pilot scale. Enhancing R&D and manufacturing infrastructure for non-agchem. Have already commercialized one new molecule in this space this year.
Launched 5 new products and 2 more are planned in Q3. Also expanding the depth of offerings in addressing new market segments such as TAURUS, a revolutionary nematicide and TOMATOUGH, a unique biological product.
Plan to continually introduce brands with a pipeline of over 17 more innovative products in different stages of development and registration. Striving to deliver cutting-edge solutions to maximize farmer productivity for their crops. Already have a fleet of 300-plus advanced boom sprayers and also piloting drone application services.
Diversification through inorganic route remains top priority apart from technology scale-ups.
Been able to improve asset turns by increasing the productivity and efficiency. Going forward, the company is putting more efforts and experiences, more areas in this front to drive capacity announcements with low capital investments.
Increased CAPEX Guidance from 650 to 700Cr. More focus on driving capacity enhancements with low capex through productivity, process technology and throughput efficiency. Identified number of initiatives, many in process of fine tuning and execution.
As far as SEZ are concerned, have 2 SEZ units where have 5 years or 10 years. Looking at that, comfortably have left 5 more years to get SEZ benefits will continue.
Products launched in last 3 years are contributing 16-17% on an annual basis.
No constraint of putting more capacity and ramping up. Comfortable with current capacities.
European markets are not moving to India. Getting opportunities from the Europe. But it's not that Europe manufacturing base is completely shutting down.
There is no room for spot order business in the model.
Believe that India is well-poised to address this opportunity to emerge asa high-technology manufacturing base. India's approach to looking at the backward integration across all sectors will be a strong asset.
Looking at a higher level of contribution coming from the domestic business with the changed focus and strategy with the introduction of new products.
Have started looking at building in more complex areas in the chemistry. Flow chemistry technology is getting upgraded and innovation spends are moving up.
Expecting some 3 to 4 molecules in agchem and 1 molecule in the non-agchem segment to be commercialized in the next half, H2.
Disclaimer:- Nothing on this website should be construed as investment advice. Please consult your financial advisor before taking any decision. We are not SEBI registered RA/RIA. The author owns the stock in their portfolio at the date this post was published.
Disclaimer:- Nothing on this website should be construed as investment advice. Please consult your financial advisor before taking any decision. We are not SEBI registered RA/RIA. The author owns the stock in their portfolio at the date this post was published.