PIIND - PI Industries Limited Share Price

Management Outlook:
PI Industries' management remains optimistic despite global agrochemical challenges, focusing on innovation, sustainability, and supply chain efficiency. Key long-term strategies include transitioning from agrochemicals to life sciences (pharma CRDMO, electronic chemicals, biologicals) and leveraging new molecules, partnerships, and technology.

Major Points:

1. Growth Drivers:

   • Agrochemical Exports: 9% YoY growth for 9M FY25; new products grew 35% YoY.
   • Domestic Business: 5% YoY growth (9M FY25) with biologicals surging 25%.
   • Pharma CRDMO: Sequential revenue growth of 55% in Q3; targeting 20-25% growth in 2-3 years.
   • Biologicals: Expanding in India and global markets (US, Brazil, EU) with a pipeline of 20+ products.

2. Investments & Expansion:

   • Building differentiated CRDMO capabilities in pharma with global talent and assets.
   • Acquired Plant Health Care's protein/peptide tech for biologicals; advancing AI-based insecticide (Phase 3 trials).
   • Scaling electronic chemicals (commercialized 2-3 molecules; targeting semiconductor opportunities).

3. Financials:

   • Strong cash flow (+8% YoY) and net cash position (Rs.42,091 million).
   • EBITDA growth (+17% for 9M FY25) driven by product mix and cost efficiency.

4. Sustainability & ESG:

   • Ranked top 3% globally in S&P Sustainability Yearbook.

Forward Focus:
Mid-term growth expected from new initiatives (pharma, biologicals), while core agrochemicals stabilize post-industry destocking. Domestic recovery hinges on rural demand and monsoon trends.

Question 1:
Question Text: "My first question is on the pharma products that we were developing under PI umbrella before the acquisition of the new pharma business. What is the progress of that? Have we seen scaling up of those products which were under our R&D into the new facilities? And a concurrent question on the pharma business is, where are we currently in terms of the margin profile, both on gross and EBITDA level?"
Answer Summary: COVID-19-related intermediates and earlier R&D projects are integrated into the pharma pipeline. Gross margins are 48-50%, with improvement expected as CRDMO projects mature over the next 1"“2 years.

Question 2:
Question Text: "As our Vice Chairman highlighted in his speech, both of these areas represent new business ventures: pharma and biologicals, particularly the new technology platforms we have acquired. We firmly believe that we are on the right path. We are also transitioning, as you will understand, from the previous business model to the new CRDMO model. Consequently, there are certain portfolio changes in products; new product inquiries, new types of projects, and new customers are being incorporated in pharmaceuticals. We anticipate that once this business model stabilizes in approximately the next year, we will experience growth of 20% to 25% year-on-year in the forthcoming period. This is the visibility we have in pharma for the next two to three years."
Answer Summary: Pharma is expected to grow 20-25% YoY post-stabilization. Biologicals, though small, aim for 25-30% growth in key markets. Both verticals are in early stages but positioned for aggressive scaling in 2"“3 years.

Question 3:
Question Text: "With respect to these new products which have grown 40% on a year-on-year basis, would it be fair to say that they make up about 20% of the exports portfolio? Or has that number changed materially this quarter?"
Answer Summary: New products contribute ~20% of AgChem exports, consistent with prior quarters. Margin improvements stem from favorable product mix, though quarterly variations may occur.

Question 4:
Question Text: "In terms of the diamide that we are targeting to launch, can you give us some color on field trials? When do we plan to launch this product?"
Answer Summary: The proprietary diamide insecticide (PIOXANILIPROLE) is in Phase 3 trials. Regulatory submissions are expected in ~1 year, with a commercial launch targeted in ~2 years, starting in India and expanding via partnerships.

Question 5:
Question Text: "What is the current share of biologicals in your domestic portfolio, and what is the overall market potential in India and exports?"
Answer Summary: Biologicals constitute ~15% of domestic revenue, with PI among India's top three players. The global biologicals market is projected to double to $20 billion by 2028, with PI leveraging acquisitions and registrations to expand in India, the U.S., and Brazil.

Question 6:
Question Text: "What is the order book visibility for AgChem CSM in FY26? Can it deliver double-digit growth?"
Answer Summary: The $1.4 billion order book includes long-term contracts and annual POs. Growth hinges on industry recovery in H2 CY25, with clarity expected post-Q4 as global trade dynamics stabilize.

Question 7:
Question Text: "Can you explain the increase in depreciation and the pharma revenue target for FY25?"
Answer Summary: Higher depreciation stems from amortization of intangibles tied to the Plant Health Care acquisition. Pharma revenue guidance remains Rs. 250"“275 crore for FY25, with sequential growth driven by CRDMO projects.

Question 8:
Question Text: "What is the progress in electronic chemicals?"
Answer Summary: Two molecules commercialized in FY25, with two more planned. Over 50% of new inquiries are from electronic chemicals, aligning with India's semiconductor expansion. Contribution remains modest but poised to scale.

Question 9:
Question Text: "Have recent acquisitions met expectations? When will they contribute meaningfully?"
Answer Summary: Acquisitions (e.g., Plant Health Care) are strategic entry points into biologicals and pharma. Contributions to overall revenue will take 2"“3 years due to regulatory and scaling timelines, but internal progress aligns with targets.