Prince Pipes Q2 PAT rises 63% YoY to Rs 76 cr; margins contract 140 bps YoY

Prince Pipes and Fittings reported a 63.4% increase in net profit to Rs 76 crore in Q2 FY22 from Rs 46.57 crore posted in Q2 FY21.

Net sales grew by 66% to Rs 761 crore in Q2 FY22 from Rs 459 crore in Q2 FY21 led by plumbing and SWR portfolio, which delivered robust volume growth. Sales volume increased by 22% at 42,845 MT in Q2 FY22 as compared to 35,142 MT in Q2 FY21.

For Q2 FY22, EBITDA stood at Rs 123 crore compared to RS 80 crore in Q2 FY21, rising 53% year on year. Meanwhile, EBITDA margin for Q2 FY22 contracted by 140 basis points to 16.1% from 17.5% in Q2 FY21.

Commenting on the results, Parag Chheda, joint managing director of Prince Pipes and Fittings said, Economic activity has started normalising from the quarter ended September 2021 supported by pent-up demand, ramp-up of vaccination drive, a favourable policy mix and global revival. Our performance this quarter reports robust revenue and EBITDA increase, due to our focus on volume growth in plumbing and SWR segments, led by the pick-up in urban real estate demand, new project launches & sustained demand from tier 2/3 cities. Several strategic efforts are already underway delivering results. Our goals are set on continuing to drive our 3-pronged strategy centering on organic growth, operational excellence and progress aligned to ESG objectives. We have been able to increase market share, on the back of ongoing industry consolidation. Given this trajectory, we are moving in the right direction as we continue to strengthen our business fundamentals.

The board of company recommended a dividend of Rs 1.5 per share.

Prince Pipes and Fittings is one of India's largest integrated piping solutions & multi polymer manufacturer.

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