Prince Pipes -
Q4 and FY 24 results and concall highlights -
Q4 outcomes -
Revenues - 740 vs 764 cr ( Volumes sold @ 51.4k MT vs 44.3k MT, up 16 pc )
EBITDA - 92 vs 148 cr ( margins @ 12 vs 19 pc )
PAT - 55 vs 94 cr
FY 24 outcomes -
Revenues - 2569 vs 2711 cr ( Volumes sold @ 172k MT vs 157k MT, up 10 pc )
EBITDA - 307 vs 250 cr ( margins @ 12 vs 9 pc )
PAT - 182 vs 121 cr
**Company acquired the bath ware brand - Aquel in Q4 for a total consideration of 55 cr **
( including for plant and machinery ). Its a popular brand in Western India
No of operational manufacturing plants @ 7 with total installed capacity @ 338k MT. The new manufacturing plant in Bihar is likely to start production in Q4 FY 25. Total no of warehouses @ 10
Company has product collaborations with -
Hauraton ( for drainage systems )
Lubrizol ( for CPVC plumbing compounds and products )
Tooling Holland ( for plastic injection moulding )
Skolan ( for premium - silent drainage systems )
Company is running a channel finance program worth 150 cr with 146 distributors currently listed in the program
Q4 volume growth led by - Agri, Infra and Plumbing verticals
Increase in receivables due strong demand in the month of March. Likely to come down in next 2 Qtrs ( already seeing the same )
Guiding for a 15 pc volume growth and 12-14 pc EBITDA margin range for next 2-3 yrs ( on the back of good demand from Infra, RE and Agri sectors )
Commodity prices are well behaved. Should aid business and margins. Stable prices drive good business hygiene and growth eventually
Bathware segment is currently nascent for the company. Did a sale of 10 cr for FY 24. Aquel acquisition should help increase growth in the bath ware segment
Normal yearly maintenance capex @ 50-60 cr
Current election season has had some adverse impact on demand from Infra segment. But infra is a relatively smaller segment for the company
( about 5 pc of sales ). Hence - no major demand compression in Q1
Advertisement spends for FY 24 @ 54 cr
Segment wise sales break up for the company -
Plumbing - 65 pc
Agri - 30 pc
Infra - 4 pc
Water storage - 1 pc
Company has taken price correction in last 1-2 months to improve their competitiveness
Top 4 players in Plumbing industry enjoy 70 pc mkt share
Company believes their 15 pc volume growth guidance is on the conservative side
Disc: holding, biased, not SEBI registered