Prince pipes Q3 22 concall highlights –
Some tailwinds-
PM Jai Jeevan’s budgetary allocation up 27 pc
PM Awaas’s budgetary allocation up 65 pc
Budgetary allocation for infra spending up 33 pc
PVC prices corrected by unprecedented Rs 66/kg from Apr-Nov. Prices now firming up
Firming up of prices leading to positive sentiment in sales channels and eventually causing re-stocking
Prince Pipes volume growth for Q3 at 35 pc, revenues up 6 pc yoy
Rebound in margins from Q2 ( depressed ) levels. Likely to go up in Q4
Company- long term debt free
Net working capital days down at 44 days from 68 days qoq
Bathware ground work done (finalising designs, cost structures, sales teams, outsourcing teams)
To be launched by Apr 23
Plumbing and Agri restocking nearing completion by Dec end due massive 35 pc volume growth
Expect normalised volume growth going fwd
Water tanks being made in house. Good product acceptability. Expect significant contribution in 3-5 yrs
Inventory loss in Dec Qtr was around 27 cr in Dec Qtr due falling prices / holding of high cost inventory
Continuously introducing newer value added products. They ll improve brand image and margins in long term
All the high cost inventory has now been consumed
Agri supplies is 30 pc of company’s revenues. Demand now picking up here
Telangana plant’s ( new one ) capacity ramp up on track – on expected lines
66 pc of business from RE sector. 3-4 pc from infra sector
No major capex plan in foreseeable future. A lot of heavy capex in Jaipur and Telangana is behind
CPVC contribution to revenues at 20 pc. This is highest margin contributor
Bullish on growth in next 2-3 yrs due real estate up cycle
Revenue split between Retail:Projects at 75:25
CPVC volume growth in double digits in 9M FY 22
Disc: invested, biased
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