Conference Call with Venus Pipes & Tubes Management and Analysts on Q2FY24 Performance and Outlook. Listen to the full earnings transcript.
Iron & Steel Products company Venus Pipes & Tubes announced Q2FY24 & H1FY24 results: During the quarter, the company witnessed highest-ever quarterly revenue of Rs 191.4 crore with EBITDA margins surpassing 18%. For H1FY24, the revenues stood at Rs 371 crore witnessing a growth of 54.6% YoY with margins of 16.8%. EBITDA of Rs 34.8 crore, a growth of 124.5% YoY. PAT of Rs 20.3 crore, a growth of 97.1% YoY. Revenues for Q2FY24 from Stainless steel seamless and Welded pipes witnessed a growth of 153% and 1% YoY respectively. Volume for Seamless Pipes witnessed a growth of more than 100% and Welded Pipes witnessed a growth in high teens for Q2FY24 compared to same period last year. Venus has experienced remarkable export growth, thanks to our strong on-ground team and consistent dedication to quality. Exports made up ~15% of the total revenues for Q2FY24 standing at Rs 28.5 crore vs Rs 1.6 crore for Q2FY23 We reported a positive net cashflow from operations of Rs 6.5 crore for H1FY24 The planned capex to add an additional 400 MTPM of seamless pipes is on schedule and is poised for completion by Q4FY24 Commenting on the company’s financial performance, Arun Kothari, Managing Director, Venus Pipes & Tubes, said, “We are happy to report robust financial performance with highest ever Revenues of Rs 191.4 crore growing at 51% YoY and EBITDA growing at a staggering 124.5% YoY, whilst EBIDTA margins stood at 18.2% for Q2FY24. Revenues for H1FY24 stood at Rs 371 crore witnessing a growth of 54.6% YoY with EBITDA margins standing at 16.8%. During the quarter, we witnessed solid growth on the exports front, forming 15% of our revenues largely due to our backward integration of seamless pipes resulting in increased acceptance for our products primarily in European markets. We are optimistic that this momentum to persist going forward and continue to focus on expanding our share of exports. Additionally, the imposition of ADD on seamless pipes and mother hollow pipes has benefited us immensely. As Venus being among very few players with backward integration in stainless steel seamless pipes. Welded pipes also witnessed a strong volume growth with increased demand. Historically, H2 has been a stronger half of the year, and we are optimistic about the same for this year as well. Our growth trajectory remains strong as we actively pursue expansion into new sectors and geographies. Our commitment to delivering best-in-class products remains unwavering, and we are dedicated to elevating the Venus brand to new heights.” Result PDF
Conference Call with Venus Pipes & Tubes Management and Analysts on Q1FY24 Performance and Outlook. Listen to the full earnings transcript.
Iron & steel products company Venus Pipes & Tubes announced Q1FY24 results: Highest-ever revenue of Rs 179.6 crore, a growth of 58.1% on a YoY basis Highest-ever EBITDA of Rs 27.6 crore, a growth of 91.7% on a YoY basis Highest-ever PAT of Rs 17.4 crore, a growth of 91.2% on a YoY basis Total capex will be in the range of Rs 40-45 crore which will be funded from internal accruals Commenting on the company’s financial performance, Arun Kothari, Managing Director, Venus Pipes & Tubes, said, “We are happy to report robust financial performance with Revenues growing at 58% YoY and EBITDA growing at 92% YoY, whilst EBIDTA margins increasing by ~269 bps YoY. We started FY24 by commencing operations at our new facilities and now have tripled our capacity along with backward integration of manufacturing of mother hollow pipes. This has not only enhanced our competitiveness but also enabled us to enter new markets and customer segments. The industry is witnessing a notable shift towards organized players due to the compulsory BIS certification and the implementation of Anti-Dumping Duty (ADD). This provides us with a great opportunity to seize the industry's structural changes. Moreover, the Indian capex cycle is underway, driven by government support and favorable policies, resulting in substantial investments across industries and increased demand for our products. With a wide range of product SKUs and enhanced capacities, robust domestic demand, and increased opportunities in the export markets, we are optimistic about sustaining the growth momentum going forward. We are well-positioned to capture new markets, forge stronger partnerships, and continue to raise the bar in terms of product excellence and customer satisfaction. At Venus, the company strives to increase its market share by adding to the product portfolio, expanding the client base and serving the existing clients better.” Result PDF
Conference Call with Venus Pipes & Tubes Management and Analysts on Q4FY23 Performance and Outlook. Listen to the full earnings transcript.
Iron & Steel Products company Venus Pipes & Tubes announced Q4FY23 & FY23 results: Q4FY23: Total Revenue stood at Rs 176.3 crore in Q4FY23 as compared to Rs 110.2 crore in Q4FY22, growth of 60% YoY Revenue for seamless pipes stood at Rs 96.9 crore in Q4FY23 as compared to Rs 34.3 crore in Q4FY22, a growth of 182% on a YoY basis Sales to direct domestic customers increased by 90% for Q4FY23 & 102% for FY23 on a YoY basis EBIDTA for the quarter stood at Rs 21.6 crore, a growth of 57% on a YoY basis PAT for the quarter stood at Rs 13.4 crore, a growth of 66% on a YoY basis FY23: Revenue of Rs 552.4 crore for FY23, a growth of 43% on YoY basis EBITDA of Rs 69.1 crore for FY23, a growth of 40% on a YoY basis PAT of Rs 44.2 crore for FY23, a growth of 40% on a YoY basis The Board of directors has recommended final dividend of Rs 0.5 per equity share, i.e., 5% on face value of Rs 10/- per equity share respectively for FY23 subject to approval of shareholders in the ensuing Annual General Meeting. With this, the total dividend declared for FY23 stands at Re 1 per equity share of Rs 10/- each. Commenting on the company’s financial performance, Arun Kothari, Managing Director, Venus Pipes & Tubes, said, “We are proud to announce that the company achieved its highest ever Revenue for Q4FY23 & FY23 registering a growth of 60% & 43% respectively. Our EBIDTA & PAT grew by 40% YoY for FY23. We are also delighted to inform that we have started our commercial production for our new capacity of Seamless pipes & higher dia welded pipes on 24th May 2023. Alongside, we have also commenced our production for Mother Hollow pipes as our capacity expansion for backward integration. We have doubled the sales of Seamless Pipes in FY23 on account of our product quality, deep customer connects, addition of new customers & brand created for Venus over the years. Exports sales were impacted during the quarter on account of geo-political tensions and inflationary environment, especially in the European market. We believe that this is temporary in nature and exports sales should start picking up since we have commenced backward integration. We enter FY24, with positive outlook and continue to grow on the back of our new capacities commencing and backward integration coming into place. We continue to work on our goal of reaching out to as many sectors as we can and maintaining diversity across our products, clients and geographies with high spirits.” Result PDF