Prince Pipes & Fittings Ltd

Q4FY23 Con-call Updates

• Continue product expansion with launch of state of art products in piping division which brings innovation & global products in Indian market.

• planned greenfield expansion in state of Bihar. The expected capacity of piping plant would be around 35000 MT initially which is investment of Rs. 150Cr. which includes land and adequate infrastructure plan to commence production by Q4FY25.

• Bathroom Segment: Vendors and designed have been finalized & core team building including 3 state heads & services engineers have already been appointed.

• Set to launch entire bathware range in end of Q1FY24.

• Debtor days decreases from 60 in 2020 to 56 days in 2023.

• Inventory days decreases from 85 days in 2020 to 57 days in 2023.

• Overall working capital days was 68 in march 2022 to 57 days in march 2023.

• Transferring from traditional legacy system to Global ERP system this implementation face certain challenges & thus affect Q1FY24 result.

• They have done 30Cr. of net sales in FY23 and for FY24 they are planning to double there sales of water tank.

• Margin in storage tank is same as pipes & fittings which is 12 to 14%.

• FY24 capex 80-84Cr. for land & building in Bihar and 80-85Cr. maintenances capex.

• Total Advertising expenses in Q4Fy23 is Rs. 12 Cr. and for whole year is 125Cr.

• Company source 45% of Raw material (PVC resin) locally from reliance and chemplast and remaining import.

• Company has 10% market share in CPVC and 7% market share as whole.