PI Industries: A miss on most fronts, but expect back-ended growth in FY18; 2HFY18 to see moderate growth
Revenue grew 10.2% YoY to INR5,377m (est. of INR6,004m) in 3QFY18. EBITDA margin shrunk 170bp YoY to 19.5% (est. of 22.0%), led by an increase of 212bp YoY in other expenses and 95bp in raw material cost. Agri revenue was impacted by unusual rains in states like Chhattisgarh, Telengana and Karnataka, and also by GST-related hiccups. CSM business was hurt by supply disruption from China and higher raw material prices. EBITDA rose 1.4% YoY to INR1,048m (est. of INR1,322m), primarily due to higher raw material cost and an adverse product mix in the agri segment. Consequently, adj. PAT fell 14.2% YoY to INR806m (est. of INR97m) from INR939m in 3QFY17.