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Prince Pipes zooms 13% on healthy operational performance in Q2

Improving product mix, stringent input cost control, efficient marketing strategy, and good volume growth have translated into strong margin expansion during the quarter, the management said

PVC pipe

SI Reporter Mumbai

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Shares of Prince Pipes and Fittings (PPFL) zoomed 13 per cent to Rs 705.85 on the BSE in Wednesday’s intra-day trade on heavy volumes after the company reported a healthy operational performance in September quarter (Q2FY24).
The stock was trading shy of its 52-week high of Rs 759.50 touched on September 13.

Profit after tax (PAT) improved for the quarter to Rs 71 crore as compared to a loss of Rs 24 crore in Q2FY23.

PAT includes exceptional item for quarter represents net gain of Rs 17.93 crore towards settlement of registration of Corporate office, at The Ruby, Dadar, Mumbai, based on the valuation report.

In Q2FY24, revenue increased by 3 per cent year-on-year (YoY) to Rs 656 crore as compared to Rs 636 crore in Q2FY23.

Finished goods volume grew by 8 per cent YoY in Q2FY24 on account of growth across Plumbing and SWR segments.

At 10:31 AM; PPFL was quoting 12 per cent higher at Rs 696.80, as compared to 0.05 per cent rise in the S&P BSE Sensex.

The average trading volumes on the counter jumped over nine-fold today, with a combined 3.7 million equity shares having changed hands on the counter on the NSE and BSE.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) in Q2FY24 improved sharply to Rs 94 crore as compared to a loss of Rs 11 crore in the year ago quarter. EBITDA margin enhanced to 14.3 per cent.

Improving product mix, stringent input cost control, efficient marketing strategy, and good volume growth have translated into strong margin expansion during the quarter, the management said.

PVC prices have seen some correction in October, which the management believes will enhance affordability and support better volumes as progress.

The long-term industry fundamentals remain strong, and the management expects continued growth in the second half of the fiscal and continues with a firm commitment to strengthening India’s water infrastructure.

PPFL is one of India’s largest integrated piping solutions & multi polymer manufacturers.

Prince is one of the fastest-growing companies in the Indian pipes and fittings industry. The company has been engaged in the manufacturing of polymer piping solutions in four types of polymers - CPVC, UPVC, HDPE, and PPR.

In August 2020, the company announced its association with Lubrizol - inventors and largest manufacturers of CPVC compounds worldwide, headquartered in the United States; and thereafter launched Prince Flowguard Plus CPVC plumbing systems.

In June 2023, Prince Pipes launched Prince Bathware – Elegant-Indulgent-Stylish – a top-of-line range of faucets and sanitaryware transforming the bath space.

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First Published: Nov 08 2023 | 10:59 AM IST

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