Prince Pipes and Fittings (PRINCEPIPE) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 saw 4% YoY volume growth, led by plumbing and SWR segments, despite a 16% drop in PVC prices causing channel destocking and impacting profitability.

• H1 FY25 revenue grew 1% YoY, with 9% YoY volume growth, primarily from plumbing and related segments.

• Q2FY25 revenue declined 5% YoY to ₹622 crore, while H1FY25 revenue was ₹1,227 crore.

• EBITDA margins contracted to 7.4% in Q2FY25 and 8.5% in H1FY25.

• Recognized as a Great Place to Work, enhancing employer branding and talent retention.

Financial highlights

• Q2 FY25 revenue: INR 622 crore (vs INR 656 crore Q2 FY24); EBITDA: INR 46 crore; PAT: INR 15 crore (vs INR 71 crore Q2 FY24, which included INR 18 crore exceptional gain).

• H1 FY25 revenue: INR 1,210 crore (1% YoY growth); EBITDA: INR 104 crore (vs INR 139 crore H1 FY24).

• Inventory losses in Q2 estimated at INR 12-15 crore; additional 2% of revenue given as trade incentives to support volume growth.

• Aquel bathware division posted INR 7 crore revenue in Q2, with controlled losses of INR 3-4 crore per quarter.

• Water tank segment revenue for Q2: INR 12 crore.

Outlook and guidance

• Targeting 8%-10% volume growth for FY25, with H2 expected to outperform H1 due to normalized inventory and strong end-market demand.

• EBITDA margin guidance remains at 12% ex-inventory gains/losses in a normalized environment.

• Bathware segment expected to exceed INR 25 crore revenue in FY25, with break-even projected by Q3 FY26.

• Focus on strengthening presence across the product chain and expanding distribution network.

• Emphasis on sustainable growth, cost reduction, and product innovation to maintain EBITDA margins.