/images/ppid_59c68470-image-178911252300254912.webp)
/images/ppid_59c68470-image-17890925646493827.webp)
/images/ppid_59c68470-image-178911261931015763.webp)
/images/ppid_59c68470-image-178910758556066452.webp)
What is the story about?
Shares of PI Industries Ltd. fell as much as 7% on Friday, September 11, after one of its largest clients cut its profit guidance for the fiscal year that it follows.
Kumiai Chemicals has cut its profit guidance for its fiscal year, which ends on October 31, 2026. The full year operating profit guidance has been cut to 2,700 million yen compared to its previous guidance of 7,200 million yen.
The company attributed the operating profit guidance cut primarily to a loss on inventory valuation following a decline in the market price of AXEEV, after the entry of generic versions of the same in markets outside Japan.
However, it revised its revenue forecast higher to 1,75,000 million yen from the previous 1,62,000 million yen earlier.
Kumiai Chemical is one of PI Industries' largest clients.
Why Does The Kumiai Profit Guidance Cut Matter For PI Industries?
PI Industries supplies pyroxasulfone to Kumiai Chemicals, which is branded as AXEEV by Kumiai and it is this Pyroxasulfone that contributes to 40% of the overall sales for PI Industries.
PI Industries reported its first quarter earnings last month. Its consolidated profit declined 39% to ₹244.2 crore from ₹400 crore in the previous year.
Its revenue from operations was down 10.4% at ₹1,702.3 crore from ₹,1900.5 crore. The company's earnings before interest, taxes, depreciation and amortization (EBITDA) declined 29.2% to ₹367.4 crore from last year's ₹519.1 crore. Its EBITDA contracted to 21.6% from 27.3% in the year-ago period.
Shares of PI Industries declined 7.4% to hit their intraday and 52-week low of ₹2,191 on Friday. Shares are currently trading 5% lower at ₹2,247.2. The stock is down 18% over the last one month and has extended its year-to-date losses to 30%.
Also Read:NSE IPO price band announced - Here's how much retail will have to pay for one lot
Kumiai Chemicals has cut its profit guidance for its fiscal year, which ends on October 31, 2026. The full year operating profit guidance has been cut to 2,700 million yen compared to its previous guidance of 7,200 million yen.
The company attributed the operating profit guidance cut primarily to a loss on inventory valuation following a decline in the market price of AXEEV, after the entry of generic versions of the same in markets outside Japan.
However, it revised its revenue forecast higher to 1,75,000 million yen from the previous 1,62,000 million yen earlier.
Kumiai Chemical is one of PI Industries' largest clients.
Why Does The Kumiai Profit Guidance Cut Matter For PI Industries?
PI Industries supplies pyroxasulfone to Kumiai Chemicals, which is branded as AXEEV by Kumiai and it is this Pyroxasulfone that contributes to 40% of the overall sales for PI Industries.
PI Industries reported its first quarter earnings last month. Its consolidated profit declined 39% to ₹244.2 crore from ₹400 crore in the previous year.
Its revenue from operations was down 10.4% at ₹1,702.3 crore from ₹,1900.5 crore. The company's earnings before interest, taxes, depreciation and amortization (EBITDA) declined 29.2% to ₹367.4 crore from last year's ₹519.1 crore. Its EBITDA contracted to 21.6% from 27.3% in the year-ago period.
Shares of PI Industries declined 7.4% to hit their intraday and 52-week low of ₹2,191 on Friday. Shares are currently trading 5% lower at ₹2,247.2. The stock is down 18% over the last one month and has extended its year-to-date losses to 30%.
Also Read:NSE IPO price band announced - Here's how much retail will have to pay for one lot
/images/ppid_59c68470-image-178914002940265595.webp)
/images/ppid_59c68470-image-178910761676862717.webp)
/images/ppid_59c68470-image-178904012765013121.webp)
/images/ppid_59c68470-image-178904502822675276.webp)