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PI Industries Receives ₹83 Crore Demand From Customs

Updated on: Jan 9, 2025, 4:44 PM IST
PI Industries Ltd. receives ₹83 crore demand from the Customs Commissioner over a classification dispute.
PI Industries Receives ₹83 Crore Demand From Customs
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PI Industries is a leading Indian agrochemical company that operates in the agro-sciences sector. It is engaged in the manufacturing and distribution of crop protection products, plant nutrients, and speciality chemicals.

Received Demand Notice

PI Industries Ltd, a prominent player in the agrochemicals sector, announced on January 8, 2025, that it has received a demand notice from the Commissioner of Customs (NS-III), JNCH, Nhava Sheva, amounting to an aggregate of ₹82.83 crore.

The demand encompasses a differential customs duty of ₹38.91 crore, coupled with applicable interest and penalties, as well as redemption fines totalling ₹43.91 crore. The contention stems from a classification dispute under the Customs Tariff concerning input materials imported during the period from 21 July 2018 to 24 November 2022.

Update for Regulatory Filing

PI Industries, in a regulatory filing, disclosed a ruling related to a classification dispute under the Customs Tariff for input materials imported between July 21, 2018, and November 24, 2022. The authority has imposed a differential customs duty of ₹38.91 crore with applicable interest and additional penalties, including a redemption fine, totalling ₹43.91 crore.

PI Industries Ltd Q2 FY25 Results

PI Industries delivered strong Q2 FY25 results, with consolidated revenue rising 12% YoY to ₹2,465 crore, driven by robust domestic and international demand. Net profit grew 15% YoY to ₹460 crores, while EBITDA stood at ₹685 crores with a margin of 27.8%, up from 27.3% in Q2 FY24, supported by operational efficiencies and a favourable product mix.

Key Growth Drivers

PI Industries highlighted the launch of two new products during the quarter, which contributed significantly to the revenue growth. The company also noted a steady increase in export volumes, particularly in geographies like Latin America and Europe, where demand for specialised agrochemicals remains strong.

Additionally, the company’s focus on research and development continues to bear fruit, with an R&D spend of ₹160 crore during the quarter. This represents approximately 6.5% of the revenue, underscoring PI Industries’ commitment to innovation.

Share Price Performance

PI Industries Ltd.’s share price was traded at ₹3,659.70 per share on NSE at 2:27 PM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jan 9, 2025, 4:44 PM IST

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