Prince Pipes Q4 Review - Beat On All Counts: ICICI Securities
Prince Pipes PVC Plumbing fittings for hot and cold water. (Image: Company website)

Prince Pipes Q4 Review - Beat On All Counts: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Prince Pipes and Fittings Ltd. reported an impressive 25.7% YoY volume growth driven by strong growth in its plumbing portfolio.

Higher inventory gains (Rs 300-350 million), operating leverage and superior pricing power led to a sharp beat in its Q4 FY21 Ebitda margin at 19.3% (our estimate: 17.4%), up 590 basis points YoY and 50 bps QoQ.

This was achieved despite marked increase in its brand spend, which was higher at 4.5% of sales versus 2-2.5% normal quarter.

The company has guided for 13-14% Ebitda margin with an upward bias on the back of likely operating leverage, superior product mix and logistics cost savings with Telangana facility likely to ramp up production in the near to medium term.

Click on the attachment to read the full report:

ICICI Securities Prince Pipes Q4FY21 Results Update.pdf

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