 "Volume worries for plastic pipe makers, but long-term growth story intact")
Organised players in the plastic pipes sector, which was severely hit by the pandemic, may witness some revival in the next few quarters. They are likely to be aided by healthy agriculture sector demand, steady profitability, and market share gains over unorganised players.
While demand in the seasonally strong March quarter was hit by the lockdown, it has picked up since then. This was on the back of improving farm income (rabi harvest), higher government spend on the rural sector, and a normal monsoon.
While companies reported weak volume growth in Q4 on account of Covid-19, margins improved due to better product
