Prince Pipes and Fittings Ltd (PRINCEPIPE) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, thank you for your patience. We will be beginning with the call in the next 2 minutes. Thank you.
Moderator: Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY '27 earnings conference call of Prince Pipes and Fittings Limited, hosted by MUFG Intime. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Omkar Bagwe from MUFG Intime. Thank you, and over to you, Mr. Omkar.
Omkar Bagwe (MUFG Intime): Good morning, everyone. I welcome you all to the earnings conference call to discuss Q2 and H1 FY '27 results of Prince Pipes and Fittings Limited. To discuss our results, we have with us from the management: Mr. Nihar Chheda, Vice President Strategy; and Mr. Anand Gupta, Chief Financial Officer. They will take you through the results, and then we will proceed to Q&A session. Before we proceed to the call, a small disclaimer. This conference may contain certain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations as on date of this call. The actual results may differ materially. These statements are not guarantee of future performance and involve risks and uncertainties that are difficult to predict. A detailed safe harbor statement is also given in company's investor presentation. Now I would like to hand the call over to Mr. Nihar Chheda. Thank you, and over to you, sir.
Nihar Chheda (Prince Pipes and Fittings Ltd): Good morning, and thank you for joining us for our Q2 and H1 FY '27 financial results. The presentation and press release has been issued to the stock exchanges and uploaded on our website. I hope everyone has been able to go through the same. Let me begin with a brief outlook on the macro-level demand-supply dynamics.
Nihar Chheda (Prince Pipes and Fittings Ltd): witness stabilization of PVC prices. The government's implementation of minimum import price on PVC resin has also further supported the domestic market environment. This element of certainty in input costs is important for improving market sentiment among our channel partners by providing predictable business conditions. Beyond these near-term developments, the long-term fundamentals of the Indian pipe industry remain encouraging. Continued investments in housing and infrastructure development have created sustained demand opportunities across India. We believe these structural drivers will continue to support industry growth and our priority is to strengthen Prince Pipes position to capture this opportunity. Now specifically coming to our performance, we delivered healthy healthy growth during the September quarter. This growth has been on the back of continued distribution expansion as well as digitization of our value chain which has helped deepen our connect with retailers and plumbers across the nation. An important part of our growth strategy is also to increase our contribution in value-added premium product categories. This is a twofold strategy: first, aggressive penetration in existing value-added products like CPVC and PPR plumbing systems which has helped us not only grow revenue, but also consistently deliver healthy EBITDA margins and the second part of this strategy is investments in new product developments like Decilo low-noise piping systems made out of polypropylene. I am glad to state that Decilo pipes and fittings have been installed in residential and hospitality projects across multiple states in the past quarter. Decilo is currently manufactured in the Haridwar facility and now we plan to expand our manufacturing footprint of polypropylene Decilo systems in the Silvassa facilities by the end of March quarter, which will help us increase our contribution from value-added products apart from CPVC and PPR, and now into PP as well. Furthermore, in this quarter, we have also set up a new product innovation and R&D function. The single-line objective of this function is to help set up more product categories which are value-added in nature. Over the next few years, we will be launching some more new products in the piping division where Prince will be a first mover. Our intent is to replace conventionally used metal and concrete pipes at construction sites with polymer piping solutions which win on longer product life cycle, faster installation speeds, and lower total cost of ownership for Indian builders and contractors. Contribution from such polymers of CPVC, PPR, and PP also reduce our dependence on the core product category of PVC and hence going forward, over the long-term, margins may not be as volatile due to commodity prices. Alongside product development, we are also working on deepening our market penetration and strengthening our presence across geographies. Our emphasis is on improving reach, building stronger channel relationships, and expanding our footprint in markets where we see opportunities to gain market share. Building a strong consumer brand is of top priority to us. During the September quarter, we undertook several branding initiatives, amongst which I'm happy to announce that Prince Pipes will be sponsoring Kon Honaar Crorepati, which is the Marathi language version of Kaun Banega Crorepati, which will be hosted by Madhuri Dixit. Such high-visibility brand building campaigns are aimed at strengthening brand recall and reinforcing Prince Pipes position as a trusted brand amongst quality piping solutions. We believe that continued investments in brand salience supported by product innovation and distribution strength will help us build deeper connections with home owners across India.
Nihar Chheda (Prince Pipes and Fittings Ltd): Looking ahead, we remain focused on sustainable growth driven by our strong fundamentals, diversified product portfolio, and a retailer and plumber-centric approach, which positions us well for sustained long-term growth. Thank you for your time and mindshare. I will now hand it over to our CFO, Anand Gupta, to take you through the key fiscal highlights and especially the efforts taken on improving the quality of our sales, which has helped us drive robust capital efficiency.
Anand Gupta (Prince Pipes and Fittings Ltd): Thank you, Nihar, and good morning, everyone. I'll be taking you through the quarter two and H1 FY '27 financials now. Starting with the quarterly highlights. Revenue from operations stood at Rs. 821 crores, a strong growth of 38% YoY. Our volumes for the quarter stood at 52,080 metric ton, a robust growth of 22% YoY. EBITDA for the quarter stood at Rs. 100 crores, a growth of 82% YoY, while margins stood at 12%, registering a 300 basis point growth. Profit for the Profit after tax for the quarter stood at Rs. 48 crores, delivering a growth of 220% YoY. And PAT margins for the quarter stood at 6%, a 400 basis point growth. Now moving to half-yearly highlights, revenue from operation for H1 FY '27 stood at Rs. 1,430 crores, a 22% growth YoY. And volume for H1 stood at 92,809 metric ton, a growth of 7% YoY. EBITDA for H1 stood at Rs. 177 crores, up by 86% YoY. And margins is at 12% for H1 FY '27, a 400 basis point growth. PAT for the quarter stood at Rs. 82 crores, while margin stood at 6%, registering a 400 basis point growth. Total installed capacity as on H1 FY '27 stands at 4,35,000 metric ton. Working capital days stood at 55 days in H1 FY '27. A receivable days saw a significant dip, and it stood at 34 days, whereas inventory is stabilized at 74 days as of 30th September 2026. We improve working capital efficiency by improving quality of sales and tightening credit control. We accelerated cash realization. We have reduced receivable intensity and supported DSO improvement without compromising sales growth. We will continue to have this effort on coming quarters and we will see more improvements in our DSO days. With this, I now end my speech and open the forum for question-and-answer session.
Moderator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sneha from Nuvama Wealth Limited.
Sneha (Nuvama Wealth Limited): Hello team, thanks a lot for the opportunity. So team, we've seen a great amount of volume growth coming in this quarter. What I wanted to understand was how much would you actually, you know, give it to restocking and how much would be the actual demand growth according to you? And how is the sustainability happening in Q3, Q4 after?
Nihar Chheda (Prince Pipes and Fittings Ltd): Yeah, thank you, Sneha. So, I think of course one part of it has been restocking because at the beginning of the quarter channel inventory was low and we finally saw PVC prices firm up and now with the MIP there is a floor on PVC prices, so there is more certainty in pricing going forward, especially there's a limited downside. So, now distributors are not resisting from keeping inventory, which is not a one-off, but that will be sustainable over the coming quarters. I think as far as demand is concerned, demand is healthy, end-product demand.
Nihar Chheda (Prince Pipes and Fittings Ltd): And what has also helped is we have seen more consolidation also take place. So, smaller players are struggling, in current times, with, you know, the current raw material scenario. So over the past many quarters now smaller players have been losing market share, and we we are seeing consolidation. So, I think these are the two or three, reasons why volume growth has been strong.
134 more turns of this transcript: log in to Stocksigma to read the full call.