Prince Pipes Q3 PAT drops 48% YoY to Rs 35 crore; volumes at 43,693 MT

Prince Pipes and Fittings reported 48% fall in net profit to Rs 35 crore in Q3 FY23 from Rs 67 crore recorded in the same period last year.

Revenue during the quarter rose by 6% YoY to Rs 706 crore on account of healthy volume growth across Plumbing, Agriculture and SWR.

The company's sales volume was 43,693 MT in Q3 FY23, up by 35% from 32,435 in Q3 FY22.

EBITDA declined by 38% to Rs 69 crore in Q3 FY23 as compared to Rs 111 crore in Q3 FY22. EBITDA margin in the third quarter was at 9.8%.

The company recorded improvement in net working capital days - 44 days as of December 2022. The cash conversion was strong with receivables at 48 days and inventory at 61 days. Net Cash position was approximately Rs 158 crore as of December end.

The company continues to remain long term debt free during the quarter, Prince Pipes said.

During the quarter, the company expaneded its product verticals with the launch of Modern Plumbing division. The initiative is a part of the company's growth strategy to bring innovative, global products to the Indian markets.

The company further stated that after a steep correction of approximately Rs 66 per kg from April 2022 till November 2022, PVC prices have recovered by approximately Rs 13 per kg in December.

Upward trend of PVC prices in December led to channel re-stocking. Affordable PVC rates improved demand scenario across housing, agriculture, and infrastructure. PVC prices now in affordable range, which augurs well for medium term demand scenario as stronger demand visibility continues.

Parag Chheda, Joint Managing Director, Prince Pipes and Fittings Limited, said, Our volume performance this quarter has been very heartening as we continued to face pressure on PVC prices until November, which started showing upward trend in December, leading to improvement in sentiment and re-stocking in the distributor channel. This stability supported by underlining demand momentum from real estate, agriculture, and infrastructure sectors, provided strong growth impetus.

PM Jal Jeevan Mission - budgeted allocation of Rs 700 billion and PM Awas Yojana allocation of Rs 790 billion are initiatives that augur well for the building materials industry.

Prince Pipes and Fittings is one of India's largest integrated piping solutions & multi polymer manufacturers, based in Mumbai, Maharashtra. The company has been engaged in the manufacturing of polymer piping solutions in four types of polymers - CPVC, UPVC, HDPE, PPR. With a network of more than 1,500 distributors, PPFL is steadily increasing pan-India distributor base.

The scrip rose 0.73% to end at Rs 615.40 on the BSE.

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