Prince Pipes spurts after strong Q3 performance

Prince Pipes and Fittings surged 13.46% to Rs 378.85 after the company's net profit surged 175% to Rs 66.79 crore in Q3 FY21 from Rs 24.28 crore in Q3 FY20.

Net sales during the quarter increased by 38.7% year-on-year (YoY) to Rs 549.01 crore. Sales volume increased by 18% at 36,711 MT in Q3 FY21 compared to 31,122 MT in Q3 FY20.

EBITDA was at Rs 103 crore in the third quarter as compared to Rs 53 crore, registering a YoY growth of 93%. EBITDA margins was at 18.8% as on 31 December 2020 as against 13.5% as on 31 December 2019.

Profit before tax soared 2.79 times to Rs 88.97 crore in Q3 FY21 from Rs 31.89 crore in Q3 FY20. Current tax during the quarter rose to Rs 22.60 crore from Rs 7.30 crore in the corresponding period last fiscal.

The company's working capital cycle was at 28 days, as it continues to improve despite double digit volume growth. Excluding IPO proceeds, the company remained net cash positive with a balance of Rs 37 crore.

Commenting on the results, Parag Chheda, joint managing director of Prince Pipes and Fittings (PPF), said: This quarter, we focused efforts in maintaining growth momentum through the continuity of several measures which have started delivering results. We are delighted that the seventh manufacturing facility at Sangareddy, Telangana has commenced production much ahead of schedule.

The facility allows PPF to expand pan-India manufacturing capacity, make greater in-roads into the Southern region and further fortifies our leadership position as a manufacturer of high-quality UPVC, CPVC and DWC pipes and fittings.

The team continues to undertake aggressive marketing outreach to leverage our association with Lubrizol which has generated very encouraging response across metro and Tier 2 regions and complemented our performance through value and volume growth.

On an overall basis, cumulative efforts of all strategic initiatives are now visible, with the balance sheet reflecting a net cash positive position excluding IPO proceeds.

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

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