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