PI Industries Q4FY21 profit is up over 60 percent aided by strong exports but margins are under pressure. Detailing the numbers, Mayank Singhal, VC and MD of the company said that the margins were impacted by reduced Merchandise Exports From India Scheme (MEIS) benefits and change in sales mix.

“Margin shrinkage has been driven by MEIS and that is about 1.5-1.6 percent. The balance of the margin has been contributed due to a different product mix. Also, on the other hand, we have started some new products. So there is a startup cost that is being built into this margin. But we believe that going into the future, this will be back up,” he said in an interview with CNBC-TV18.

He also said that the company has not seen any impact on production and capacity utilization due to the second wave of COVID-19 and expects to maintain the 20 percent guided growth despite COVID challenges.

“We have typically been growing at the 20 percent indication, but last year has been exceptionally well. We have grown at 36 percent as an organization. We have further indicated a 15 percent growth rate in the coming year and purely that has been taken into view that COVID times are rather uncertain. Looking at the challenging times of COVID, we would still continue to maintain that for the organization,” he said.

Singhal also expects continued growth in the Isagro business and said that the Isagro investments will be in the horticulture space.

“We expect the top line to continue to grow in the Isagro business with the focus on the horticulture segment with fruits, vegetables, and plantations. I am pretty confident that should grow and in the next 2-3 years this would be in the investment phase as we do recognize this sector as one of the fastest-growing sectors and something that can be a differentiator going into the future,” he said.

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(Edited by : Anshul)