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PI Industries: GST Transition and Slow Exports Impact Topline - Views on News from Equitymaster
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  • Aug 17, 2017 - PI Industries: GST Transition and Slow Exports Impact Topline

PI Industries: GST Transition and Slow Exports Impact Topline
Aug 17, 2017

PI Industries has announced the first quarter results of financial year 2017-2018 (1QFY18). While the topline declined by 14.4% YoY, the bottomline declined by 21.1% YoY during the quarter.

Performance summary:
  • Total income declined by 14.4% YoY during the quarter. Export (CSM Business) contributed ~54% of the revenue, while the domestic business contributed the remaining. Domestic revenue declined on the back of channel de-stocking on account of GST transition. CSM business declined by 11.8% YoY on the back of lower exports.
  • Operating margins stood at 22.3% during the quarter. Operating profit declined by 21.2% YoY due to higher other expenses (related to consulting charges)
  • Depreciation saw an increase of 10.7% YoY. Finance cost declined by 13% YoY during the quarter.
  • Net profit declined by 21.1% YoY. Tax rate was marginally lower at 18% compared to 19% in 1QFY17.

    Financial performance: A snapshot
    (Rs m) 1QFY17 1QFY18 Change
    Total Income 6,834 5,848 -14.4%
    Expenditure 5,178 4,544 -12.3%
    Operating profit (EBDITA) 1,656 1,304 -21.2%
    Operating profit margin (%) 24.2% 22.3%  
    Other income 113 126 11.4%
    Interest 16 14 -13%
    Depreciation 178 197 10.8%
    Profit before tax 1575 1219 -22.6%
    Tax 306 218 -28.9%
    Profit after tax/(loss) 1,269 1,001 -21.1%
    Net profit margin (%) 18.6% 17.1%  
    No. of shares (m)   137.59  
    Fully diluted EPS (Rs)*   31.30  
    P/E (x)*   23.6  
    *Based on trailing 12-months earnings
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