Prince Pipes and Fittings (PRINCEPIPE) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 was challenging due to PVC price volatility, delayed demand, and sluggish infrastructure execution, resulting in performance below expectations and a net loss.

• Profitability was impacted by lower volumes, high-cost inventory, and industry-wide destocking due to falling PVC prices and delayed anti-dumping duty implementation.

• Growth strategies include investments in distributor management systems, brand reinforcement, expansion of the Bathware vertical, and acquisition of the Aquel brand.

• The new integrated manufacturing facility in Bihar will be commissioned soon, targeting East India demand.

• Recognized as a Great Place to Work and ranked among the top two most desired pipe brands by TRA Research.

Financial highlights

• Q3 FY25 revenue was INR 578 crore (Rs 5,777.24 million), down from INR 619 crore (Rs 6,186.15 million) in Q3 FY24; volumes were 41,267 tons versus 42,665 tons.

• EBITDA for Q3 FY25 was INR 3 crore, with a net loss of INR 20 crore (Rs 204.24 million); nine-month FY25 revenue was INR 1,804 crore (Rs 18,042.62 million), slightly down YoY.

• Nine-month EBITDA was INR 107 crore; net profit for nine months was INR 19 crore (Rs 1,278.47 million), down from INR 128 crore (Rs 1,824.97 million) YoY.

• Inventory loss for Q3 was INR 30 crore; total inventory loss for nine months was INR 50 crore.

• Q3 FY25 EBITDA margin contracted to 0.5% from 12.3% in Q3 FY24; 9MFY25 margin at 5.9% versus 11.8% in 9MFY24.

Outlook and guidance

• Expecting volume improvement from March quarter and normalization of margins from June quarter.

• Targeting mid to high single-digit volume growth for FY25 and double-digit growth from FY26.

• Long-term EBITDA margin target remains at 12%, with normalization expected as volumes recover.

• Focus on strengthening presence across the product chain, expanding distribution, and introducing value-added products.

• Emphasis on improving ROCE and ROE, cost reduction, and sustainable growth through innovation.