Prince Pipes Q3 profit jumps
Shares of Prince Pipes gained the most Thursday, up 17.7% to Rs 394.1 apiece—also a record high, after the pipe maker reported strong growth in profit and revenue during the third quarter.
The company’s revenue rose 39% over the year earlier to Rs 549 crore in the quarter ended December. Its net profit jumped threefold to Rs 66.7 crore.
Operating profit, or Ebitda, nearly doubled year-on-year to Rs 102.9 crore.
Operating margin expanded 550 basis points to 18.7%, driven by operating leverage, superior product mix and inventory gains.
The company’s sales volumes rose 18% to 36,711 million tonnes during the reported quarter, led by market share gains in PVR pipes and growth traction in CPVC pipes.
Prince Pipes’ Q3 volume growth was the best among peers, and is to witness strong growth traction in its CPVC pipe segment, coupled with cross-selling opportunities as well as from the recent product launches.
Prince Pipes, recently commenced commercial production at its seventh manufacturing facility in Telangana. The plant is expected to have a total installed capacity of about 50,000 tonnes per annum, and capacity ramp-up will be implemented in a phased manner over the next two-three years.
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