Shares of Prince Pipes and Fittings soared 18 per cent to hit a new high of Rs 393 on the BSE in Thursday's intra-day trade after the company reported a robust set of numbers in the December quarter (Q3FY21).
The firm's net profit rose 175 per cent year-on-year (YoY) to Rs 67 crore in the third quarter of FY21 on the back of higher revenues. The company had posted a profit of Rs 24 crore in the year-ago quarter.
The company’s revenue from operations stood at Rs 549 crore in Q3FY21, up 39 per cent YoY, as compared to Rs 396 crore in Q3FY20. Sales volume increased by 18 per cent to 36,711 MT in Q3FY21 compared with 31,122 MT in Q3FY20. Ebitda (earnings before interest, taxes, depreciation, and amortisation) margins improved 526 points to 18.76 per cent from 13.5 per cent in previous year quarter.
The company said the seventh manufacturing facility at Sangareddy, Telangana has commenced production much ahead of schedule. The facility allows the company to expand pan India manufacturing capacity, and make greater in-roads into the Southern region.
Meanwhile, the sharp increase in budgetary allocation for Jal Jeevan Mission program and extended tax sops on affordable housing is viewed highly positive for companies with high exposure to plumbing pipe segment.
"Higher government budgetary allocation for urban development is expected to drive the plastic pipe demand used for the infrastructure sector. Given the government continued focus to improve farm income and high budgetary allocation for the agriculture sector, we believe that this segment can witness improved demand in FY22," the company said in investor presentation.
At 11:21 am, the stock was trading 14 per cent higher at Rs 382 on the BSE, as compared to 0.04 per cent decline in the S&P BSE Sensex. A combined 2.3 million equity shares were changing hands on the counter NSE and BSE.