Prince Pipe update Q4 FY 23
Q4 FY23 revenues at ₹ 764 crore as compared to ₹ 901 crore in Q4 FY22
o Volumes in Q4 FY23 at 44,317MT as compared to 45,287 MT in Q4 FY22
o EBITDA for Q4 FY23 improved by 6% YoY at ₹ 148 crore versus ₹ 140 crore in Q4 FY22
➢ Margins enhanced significantly by 380 bps YoY to 19.4% in Q4 FY23
o PAT improved by 7% YoY for the quarter at ₹ 94 crore as compared to ₹ 88 crore in Q4 FY22
o Company continues to remain long term debt free during the quarter
Revenues in FY23 grew by 2% YoY to ₹ 2,711 crore from ₹ 2,657 crore in FY22
o Volumes improved by 13% YoY in FY23 to 157,717 MT compared to 139,034 MT in FY22
o EBITDA at ₹ 250 crore in FY23 vs. ₹ 415 crore in FY22
o PAT in FY23 at ₹ 121 crore as compared to ₹ 249 crore in FY22
o Short term debt reduced from ₹ 150 crore in March 2022 to ₹ 58 crore in March 2023
o Working capital days – 57 days as on March 2023, (68 days as on March 2022)
➢ Inventory days ‐ 57 days vs. 85 days as on March 2022
➢ Debtor days ‐ 56 days vs. 60 days as on March 2022
➢ Creditor days ‐ 56 days vs. 77 days as on March 2022
Looks like the Inventory loss cycle is finally over. The same has been bought out by the management. There has been decent growth in volumes for the year even though it has not been that profitable.
Performance for FY23 was adversely impacted by sharp decline in PVC prices leading to destocking
and inventory losses severely impacting performance in H1 FY23.
➢ After a steep correction of ~ Rs. 66 per kg from April till November 2022, PVC prices recovered by ~ Rs. 11 per kg till March 2023.
➢ Capex of 150 cr for eastern region
➢ Implementation of ERP
➢ launched wirefit and one fit for industrial use
➢
➢Ebitda Margin is back to high doiuble digit.
➢company has gained market share in this downturn.
➢Operating leverage will kick in with growth in revenue and fresh inventory being at low price.
➢ Management talks of benefit from industry consolidation and balance sheet constraints in many small unorganized players.
The same should be visible in piping players as a group.
waiting for their concall for better understanding, though this business doesn’t have lot of moving parts.
best
Divyansh
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