Prince Pipes and Fittings held a conference call on August 06, 2021 to discuss the results for the quarter ended June21 and way forward. Mr. Parag Chheda- Joint Managing Director, Mr. Shyam Sharda- Chief Financial Officer, Mr. Anand Gupta- Deputy Chief Financial Officer and Mr. Nihar Chheda- AVP (Strategy) of the company addressed the call.

Highlights of the Concall

• Revenue grew by 9% for Q1FY22 at Rs 331 crore compared to Rs 302 crore in Q1FY21 led by the plumbing and SWR (Soil, Waste and Rain) portfolios delivering healthy performance.

• Sales volume reduced by 26% at 18,466 tonne in Q1FY22 as compared to 24,792 tonne in Q1FY21. Volume was impacted as the quarter witnessed muted agri demand and due to lockdown due to the second wave which witnessed extension into rural markets while also impacting urban sales

• Sales mix for the company on a average basis is around 65% building materials, 30% is agri and balance 5% is infrastructure

• Finance costs saw a sharp decrease of 60% due to the complete repayment of long term debt and continuous improvement in cost of short term borrowings

• Gross debt as on 30th of June 2021 stood at Rs 157 crore, compared to a gross debt of Rs 256 crore, as on 30th of June 2020

• The company June 2021 performance was better than May 2021 and July 2021 performance was much better than June2021.

• The real estate sector has been reporting positive growth. This augurs well for the company signaling traction in piping products

• PVC prices have started moving upwards as demand is normalizing and supply continues to remain tight.

• Ultratech Business Solutions and Prince pipes synergy is well placed to be a mutually beneficially partnership especially for the semi urban and rural market.

• Prince Pipes Launches Prince OneFit with Corzan CPVC Technology licensed from Corzan® CPVC Technology of Lubrizol Corporation -preferred global partner of Prince Pipes. Prince Onefit Industrial Piping Systems offer high-performance, user-friendly solutions to fight corrosion and allow continuous production by decreasing downtime.

• Prince OneFit has the ability to offer world standard CPVC piping systems & technology to wide range of Indian industrial applications across Chemical, Power generation, Metal treatment, Paper and pulp, Mineral processing industry & Water Treatment plants.

• The company is confident that Prince OneFit product will replace the conventionally used product mild steel pipe for industrial application.

• Indian industrial piping market size is expected to be around approximately Rs16000 crore This is today dominated by the conventional MF pipes. In India Today cpvc is majorly used only for the domestic application whereas, globally cpvc pipes are very well accepted for the industrial application as well. The industrial cpvc segment is under penetrated and has no competitive intensity. Also the pipe to fitting and valve ratio is favorable, making this a key value proposition. This segment has also high barriers to entry because of high gestation periods for orders and the required techno commercial expertise.

• Prince OneFit will provide an optimum solution to industries such as chemical power generation metal treatment, paper and pulp mineral processing, water treatment plants, among many others.

• The Telangana plant has commenced its operations way before our time schedule and is currently operating at 4,000 tonne. The total capacity of around 50000 tonne will be executed in a phased manner over the next 2-3 years This move shall aid us to discover more opportunities in the Southern Market.