Venus Pipes Q2 PAT rises 18% YoY to Rs 24 cr in FY25

Venus Pipes & Tubes reported 16.79% jump in net profit to Rs 23.65 crore on a 19.64% increase in revenue from operations to Rs 228.95 crore in Q2 FY25 over Q2 FY24.

Profit before tax in Q2 FY25 stood at Rs 31.78 crore, up by 16.66% from Rs 27.24 crore posted in Q2 FY24.

EBITDA improved by 18% YoY to Rs 40.9 crore in the second quarter of FY25. EBITDA margin was 17.9% in Q2 FY25 as against 18.2% in Q2 FY24.

On half year basis, the companys net profit jumped 35.97% to Rs 51.21 crore on 26.44% rise in revenue from operations to Rs 469.09 crore in H1 FY25 over H1 FY24.

 

Arun Kothari, managing director for Venus Pipes & Tubes, said, "Our performance in H1FY25 has been robust, marked by strong revenue growth of 26.4% year-on-year to Rs 469.1 crore. EBITDA reached Rs 88.9 crore, reflecting an impressive 42.5% increase from the same period last year, with margins at 19.0%. Profit after tax (PAT) also demonstrated solid growth, rising 35.8% to Rs. 51.2 crore.

This robust performance has been primarily driven by exceptional export market demand, with export revenues increasing more than 2.5 times over the previous year, fueled by high demand for our products in Europe, US and Middle Eastern markets. Exports now contribute 33% of our topline, and we expect this growth momentum to continue as conditions in the Red Sea region improve. Domestically, while heavy rainfall in certain regions led to a spillover of orders, however demand outlook and our order pipeline remain as robust as ever.

Our order book continues to reflect strong demand across key sectors including, oil & gas, engineering chemicals & power. We remain optimistic about maintaining this momentum as we meet the growing needs of our clients. We look forward to delivering exceptional quality products that meet the evolving needs of our customers and exceed industry standards. Our commitment extends to delivering sustained value to all our stakeholders and shareholders, employees, and communities alike, as we continue to innovate and drive growth across all our markets."

Meanwhile, the companys board declared an interim dividend of Rs 0.50 per share for FY25. The company has fixed Tuesday, 26th November, 2024 as the record date for the purpose of payment of interim dividend.

Venus Pipes & Tubes manufactures and exports stainless-steel pipes and tubes, offering seamless and welded products in five categories. Their market extends to over 20 countries, including Brazil, the UK, Israel, and various European Union nations.

Shares of Venus Pipes & Tubes tumbled 5.15% to currently trade at Rs 1,759.10 on the BSE.

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