PI Industries' consolidated net profit rose 28.7% to Rs 187.20 crore on a 12.6% increase in net sales to Rs 1,193.80 crore in Q1 June 2021 (Q1 FY22) over Q1 June 2020 (Q1 FY21).
Consolidated profit before tax rose 19.9% to Rs 227.70 crore in Q1 FY22 as against Rs 189.90 crore in Q1 FY21. The Q1 earnings was declared post trading hours yesterday, 30 July 2021.
Meanwhile, PI Industries has intimated regarding its execution of a business transfer agreement with Ind Swift Laboratories (ISLL) and certain identified promoters of ISLL for the acquisition (either itself or through its affiliate) of its API business division by way of a slump sale on a going concern basis. ISLL is engaged in the business of manufacturing Active Pharmaceutical Ingredients (API) and intermediates.
PI Industries expects to create significant value by leveraging combined capabilities and unlock synergies. The API business of ISLL has diversified portfolio of 20+ products with a strong position in several of them along with a good R&D product pipeline.
The parties have agreed that the enterprise value of the API business division on a debt free and cash free basis shall be Rs 1,530 crore (to be paid in cash). However, the agreed enterprise value shall be subject to adjustments on account of working capital, dues of lenders and unfunded employee liabilities. The deal will be executed within three months from the date of execution of the agreement, as per the company's press statement.
Shares of PI Industries lost 0.02% to close at Rs 2,948.45 on Friday, 30 July 2021. PI Industries manufactures agricultural and fine chemicals, and polymers.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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