Prince Pipes And Fittings Limited — Investor Meet, 17-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Prince Pipes and Fittings reported Q3 FY25 revenue of ₹578 Cr, down from ₹619 Cr in Q3 FY24, with a volume decline from 42,665 tonnes to 41,267 tonnes year-over-year. The company recorded an EBITDA of ₹3 Cr and a loss of ₹20 Cr for the quarter. Over nine months, revenue totaled ₹1,804 Cr compared to ₹1,829 Cr in the same period last year, accompanied by a 4% increase in volume. Nine-month EBITDA was ₹107 Cr, with net profitability at ₹19 Cr.

**Future Outlook and Growth Drivers:** Management indicated plans for improved performance in FY26 driven by their new manufacturing facility in Bihar, set to enhance production capacity. They are investing in technologies to better manage distributor relationships and improve demand forecasting, aimed at brand strengthening and customer engagement.

**Order Book and Operational Updates:** The integrated manufacturing facility in Begusarai, Bihar, will have an initial capacity of 40,000 metric tonnes, expected to go live in Q1 FY26. Additionally, the company showed growth in its Bathware segment, expanding its footprint across Tier 2 and Tier 3 cities.

**Analyst Q&A Insights:**

- **Revenue and Profitability:** Analysts queried the strain on margins, attributed to inventory losses of ₹30 Cr due to declining PVC prices. Management expects improvement in both volumes and margins starting March, driven by increased demand and market sentiment.

- **Market Position and Competitive Landscape:** Concerns regarding market share losses were discussed, with management asserting their current 9-month volume growth aligns with peers. They are focused on regaining market share through enhanced sales initiatives.

- **Operational Challenges or Risks:** Analysts raised potential future inventory losses due to PVC price volatility. The company aims to navigate these challenges through improved market visibility and inventory management.

- **Capex and Capital Allocation:** In 9 months, Capex stood at ₹95 Cr, with another ₹60 Cr planned for Q4. Overall Capex for FY25 is projected between ₹260 Cr and ₹270 Cr, with ₹80 Cr to ₹90 Cr allocated for FY26.

- **Strategic Priorities and Long-Term Vision:** The focus remains on volume growth and operational efficiency, expecting a return to 12% EBITDA margins in the medium term as market conditions stabilize.

**Market or Regulatory Updates:** The Union Budget announced the continuation of the Jal Jeevan Mission, benefiting the piping industry by enhancing rural water supply infrastructure, a positive backdrop for Prince Pipes.

**Strategic Focus Areas:** Key themes included digitization efforts, boosting brand visibility, and maintaining competitive pricing strategies amid a complicated market landscape, shaping a cautious yet optimistic outlook.

**Investor Insight:** The current financial and operational metrics suggest a cautious stance towards investment. Recovery in profitability and volume growth is anticipated, aligning with a 'hold' position for the near term, observing market sentiment and inventory adjustments in the upcoming quarters.