Dolat Capital: Pipes Segment Q2 Earnings Preview

Pipe companies are likely to deliver volume degrowth in as all construction activities were not operational due to labour issues.

Truck driver Josh Switzer delivers PVC pipe to a residential housing lot under construction (Photographer Luke Sharrett/Bloomberg)

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Dolat Capital Report

Pipe companies to deliver volume de-growth as all construction activities were not operational due to labour issues, however growth came from Tier 2 and Tier 3 cities.

Margins likely to be stable, however, inventory losses due to raw material volatility can dent profitability.

PVC prices dropped in March by Rs 13.5/kilogram which recovered by Rs 4/kg in May, Rs. 7/kg in June and further recovered by Rs. 1.5/kg in July and by Rs. 2/kg in August.

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Dolat Capital Pipes Q2FY21 Result Preview.pdf
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