Shares of agri-sciences company PI Industries Ltd. ended with gains of over 3 percent on Monday and closed near their 52-week high on the back of strong revenue growth showcased by its largest customer.

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Japan-based Kumiai Chemical Industries reported a strong 23.2 percent revenue growth for financial year 2023, led by strong Pyroxasulfone sales, according to Equirus Capital. The said company follows a November-October financial year. Kumiai is PI Industries' largest customer.

The Japanese company also raised its earnings forecast for the rest of the financial year on higher-than-expected revenue growth in herbicide Pyroxasulfone. Sales of the said chemical increased by 42 percent year-on-year, compared to the company's earlier guidance of 34 percent.

“A solid show by Pyroxasulfone in 1HFY23 and Kumiai's guidance revision are positive signs for PI Industries,” Equirus Capital said.

This implies no inventory build-up for this product despite an overall increase in global agrochemical inventories, the brokerage noted. PI Industries manufactures the herbicide Pyroxasulfone under the AWKIRA brand.

PI Industries has posted a 12 percent year-on-year growth in revenue at Rs 1,565 crore for the March quarter as against Rs 1,395 crore a year ago. The revenue however missed the CNBC-TV18 poll estimate of Rs 1,610 crore.

Its operating profit stood at Rs 344 crore in the quarter compared to Rs 306 crore a year ago, but it was lower than the poll estimate of Rs 399 crore.

Shares of PI Industries ended 3.3 percent higher at Rs 3,740.