Q1 2027 Prince Pipes and Fittings Ltd Earnings Call Transcript
Key Points
- EBITDA grew 93% YoY with margin expansion of 600 bps to 13%, driven by improved product mix and operating leverage.
- PAT surged 580% YoY to INR37 crores, reflecting strong profitability recovery.
- Successful launch and early adoption of innovative Basillo (low-noise drainage) product, with installations in residential and commercial projects.
- Digitization of value chain (DMS and Salesforce automation) enables direct retailer schemes and a pull-based demand model, improving sales efficiency.
- Strategic network expansion into white spaces and addition of channel partners from unorganized and organized players supports future growth.
- Management maintains 11-13% EBITDA margin guidance with clear levers (product mix, pricing power, operating leverage, decentralization) to achieve it.
- Working capital management focus with debtor days at 40 days and target to reduce further to 30 days, improving ROCE potential.
- Volume degrowth of 7% YoY in Q1 FY27, impacted by channel destocking due to PVC price correction and import duty suspension.
- Bathware segment continues to incur losses (EBITDA loss of INR5 crores) with revenue of only INR13 crores, though improvement expected in Q2/Q3.
- Inventory days elevated at 100 days, above the 65-75 day guidance, due to supply insecurity and lower-than-expected sales.
- Uncertainty in PVC resin prices persists, with potential for inventory losses in Q2 despite MIP floor, as higher-cost cargoes are absorbed.
- Company's growth lagged industry in Q1, acknowledging lower volume growth compared to peers, though confident of recovery.
- Capacity utilization remains low at ~50%, with management targeting 60-65% to achieve optimal operating leverage.
- Gross debt of INR120 crores as of June 30, 2026, indicating some leverage on the balance sheet.
Ladies and gentlemen, good day and welcome to the Q1 FY27 earnings conference call of Prince Pipes and Fittings Limited hosted by MUFG Intime. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Sumeet Khaitan from MUFG Intime. Thank you, and over to you, sir.
Good evening, everyone. I welcome you all to the earnings conference call to discuss Q1 FY27 results of Prince Pipes and Fittings Limited. To discuss the results, we have from the management Mr. Nihar Chheda, Vice President, Strategy; and Mr. Anand Gupta, Chief Financial Officer. They will take you through the results and the business performance, after which we will proceed for Q&A session.
Before we proceed with the call, I would like to mention that some of the statements made in today's call may be forward looking in nature and may involve risks and uncertainties. For more details, kindly refer to the investor presentation and other filings that can be found
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