Stock to watch: Impressive Q2FY22 numbers to put Prince Pipes on investors radar!
Its earnings seasons and in the current market environment we are witnessing profit booking in those counters where there is a hint of disappointment. Market indeed is priced to perfection. Prince Pipes and Fittings Limited (PPFL) one of India’s largest integrated piping solutions & multi polymer manufacturers with 7 strategically located manufacturing units across the country, today announced its un-audited financial results for the quarter ended 30 th September 2021. PPFL has managed to declare a robust set of numbers while reported steady growth in revenues and profits.
The revenue was declared at Rs 761 crore for Q2FY22 up by over 66 per cent when compared to Rs 459 crore for Q2FY21 and Rs 331 crore for Q1FY22 which is equal to 130 per cent growth QoQ in revenues. The Volume MT was reported at 42, 845 a rise of over 22 per cent YoY and 132 per cent increase QoQ.
The revenue growth was led particularly by plumbing and SWR portfolio, which delivered robust volume growth.
Following are the highlights:
- EBITDA at ₹ 123 crores as compared to ₹ 80 crores, grew by 53%, margins at 16.1%
- PAT at ₹ 76 crores as compared to ₹ 47 crores, grew by 62%
- Company continues to remain long term debt free during the quarter
- The Board of the Directors of the Company at its meeting held on 2nd November 2021 have recommended a Dividend of ₹ 1.5/- per share of face value of ₹ 10/- each for the half year ended 30th September, 2021
Commenting on the results, Mr. Parag Chheda, Joint Managing Director, Prince Pipes and Fittings Limited, said, “Economic activity has started normalising from the quarter ended September 2021 supported by pent-up demand, ramp-up of vaccination drive, a favourable policy mix and global revival. Our performance this quarter reports robust revenue and EBITDA increase, due to our focus on volume growth in plumbing and SWR segments, led by the pick-up in urban real estate demand, new project launches & sustained demand from tier 2/3 cities. Several strategic efforts are already underway delivering results. Our goals are set on continuing to drive our 3-pronged strategy centering on organic growth, operational excellence and progress aligned to ESG objectives. We have been able to increase market share, on the back of ongoing industry consolidation. Given this trajectory, we are moving in the right direction as we continue to strengthen our business fundamentals.”
The shares of Price Pipes gained by more than 3 per cent on Tuesday while managing to close above the 20D SMA, indicating bullishness in the counter.