PI Industries falls 3% after Chinese rival enters pyroxasulfone market

Chemical producer PI Industries fell as much as 2.75 per cent to hit an intra-day low of Rs 3,389.95 apiece, after the arrival of Rainbow Agro, a Chinese corporation, in the pyroxasulfone market with a large-scale 2,000-tonne project approval.

Pyroxasulfone is one the key molecules produced by PI Industries, which has helped the company in showcasing a strong performance over the years.

The entry of Rainbow Agro in the Pyroxasulfone space, being the third Chinese firm to do so, would result in a rise in competition, posing a possible threat to the PI industries exports, as per media reports.

One of PI Industries' biggest clients, Kumiai, a Japanese agro-chemical manufacturer, has displayed signs of guidance cuts, signalling demand pressures although, Kumiai has reiterated its 20 per cent growth guidance for PI Industries.

PI Industries on Tuesday faced a major downswing of 10 per cent to end at Rs 3,485.85, after the crop protection firm's entry announcement.

In the quarter ending September, PI Industries’ profit rose 43.5 per cent annually to Rs 480.5 crore, against Rs 335 crore in the same quarter last year. Its revenue from operations jumped nearly 20 per cent annually to Rs 2,117 crore, compared to Rs 1,770 crore in the corresponding period last year.

The firm's earnings before interest, taxes, depreciation, and amortisation (EBITDA) zoomed 27.7 per cent to Rs 551.5 crore in the Q2 FY24, as against Rs 431.9 crore in the corresponding period last year.

As of 10:14 am, shares of PI Industries were trading 2.32 per cent lower at Rs 3,405 per share.