Prince Pipes soars 15%, hits fresh record high as Q4 profit grows 246% YoY

In the past one year, the stock has zoomed 680 per cent as against a 56 per cent rally in the S&P BSE Sensex

Shares of Prince Pipes and Fittings hit a new high of Rs 659.75, surging 15 per cent on the BSE in the intra-day trade on Friday, after the company reported a 246 per cent year on year (YoY) jump in its profit after tax (PAT) at Rs 97 crore for the fourth quarter of FY21 (Q4FY21) on the back of strong revenue growth.

The company, engaged in integrated piping solutions & multi polymer manufacturers with seven strategically located plants across the country, had posted PAT of Rs 28 crore in the year-ago quarter.

In Q4FY21, the company's revenue increased 77 per cent to Rs 761 crore from Rs 431 crore led by a 26 per cent rise in volume at 41,644 MT over the previous year quarter. The robust volume growth was driven by strong performance of plumbing portfolio. Earnings before interest, taxes, depreciation, and amortization (Ebitda) grew 155 per cent YoY at Rs 147 crore while margin expanded by 590 basis points (bps) at 19.3 per cent during the quarter.

The management said the company’s performance during the quarter was led by a well-defined growth strategy focusing on value expansion across its product portfolio and robust volume growth in the plumbing and SWR categories. The pipes and fittings industry is on a robust growth trajectory, it added.

Prince Pipes and Fittings has been engaged in the manufacturing of polymer piping solutions in four types of polymers - CPVC, UPVC, HDPE, PPR. The industry growth outlook remains strong driven by the government’s focus on expanding areas under irrigation and increasing urban infrastructure spending. The growing penetration of branded plumbing pipes in affordable housing project segment would further led to demand among the pipe segment.

At 01:20 pm, the stock was trading 7 per cent higher at Rs 614 on the BSE as compared to a 0.14 per cent decline in the S&P BSE Sensex. Trading volumes on the counter jumped an over four-times with a combined 2.9 million equity shares having changed hands on the NSE and BSE till the time of writing of this report. In the past one year, the stock has zoomed 680 per cent, as against a 56 per cent rally in the benchmark index.