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Prince Pipes & Fittings net sales increased 76.75% to Rs 761.36 crore in Q4FY21 compared to Q1FY20. Operating profit margin has jumped from 13.38% to 19.28%, leading to 154.68% rise in operating profit to Rs 146.80 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 68.62% to 63.51%. Purchase of finished goods cost fell from 2.47% to 1.68%. Employee cost decreased from 5.32% to 3.61%. Other expenses rose from 10.91% to 11.94%. Cost of Sales fell from 65.90% to 65.09%. Inventories cost fell from 5.19% to 0.10%.
Other income fell 13.15% to Rs 4.49 crore. Provision for interest fell 39.46% to Rs 4.97 crore. Provision for depreciation rose 4.86% to Rs 15.09 crore. Profit before tax grew 226.36% to Rs 131.23 crore. Provision for tax was expense of Rs 34.01 crore, compared to Rs 11.93 crore. Effective tax rate was 25.92% compared to 29.67%. Profit after tax rose 243.78% to Rs 97.22 crore.
FY21 performance
Net sales of Prince Pipes & Fittings have increased 26.65% to Rs 2,071.52 crore. Operating profit margin has jumped from 13.99% to 17.46%, leading to 58.07% rise in operating profit to Rs 361.64 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 67.67% to 64.11%. Purchase of finished goods cost fell from 2.81% to 1.71%. Employee cost decreased from 5.23% to 4.92%. Other expenses rose from 11.03% to 11.41%. Cost of Sales rose from 65.30% to 68.04%. Inventories cost fell from 5.18% to 2.22%.
Other income was up 153.60% to Rs 17.6 crore. Provision for interest decreased 37.68% to Rs 20.67 crore. Loan funds declined from Rs 247.67 crore as of 31 March 2020 to Rs 88.03 crore as of 31 March 2021. Inventories declined from Rs 344.52 crore as of 31 March 2020 to Rs 227.33 crore as of 31 March 2021. Sundry debtors were higher at Rs 353.37 crore as of 31 March 2021 compared to Rs 179.71 crore as of 31 March 2020. Cash and bank balance declined from Rs 257.02 crore as of 31 March 2020 to Rs 229.92 crore as of 31 March 2021. Investments rose to Rs 1.46 crore as of 31 March 2021 from Rs 0.63 crore as of 31 March 2020.
Provision for depreciation increased 14.31% to Rs 59.42 crore. Fixed assets increased to Rs 574.45 crore as of 31 March 2021 from Rs 493.10 crore as of 31 March 2020. Intangible assets increased from Rs 3.01 crore to Rs 5.08 crore.
Profit before tax grew 98.67% to Rs 299.15 crore. Provision for tax was expense of Rs 77.32 crore, compared to Rs 38.07 crore. Effective tax rate was 25.85% compared to 25.28%.
Profit after tax rose 97.16% to Rs 221.83 crore.
Promoters' stake was 63.25% as of 31 March 2021 compared to 63.25% as of 31 March 2020.
Commenting on the results, Mr. Parag Chheda, Joint Managing Director, Prince Pipes and Fittings Limited, said, "Our performance this quarter is led by a well-defined growth strategy focusing on value expansion across our product portfolio and robust volume growth in the plumbing and SWR categories. We are happy with the strong traction Prince Flowguard Plus plumbing systems has been gaining in urban, semi urban and Tier 2/3 regions. Expanding distribution, manufacturing network and building a well-diversified product portfolio are the core focus areas that have helped sustain a robust momentum throughout the fiscal. We have also made positive impact with our ESG goals which are embedded into our business approach. The pipes and fittings industry is on a robust growth trajectory and we will continue to leverage all our competitive strengths as we build a value creating organization."
The Board of the Directors of the Company at its meeting held on 12th May, 2021 have recommended a dividend of Rs 2/- per share of face value of Rs 10/- each for the year ended 31st March, 2021. The Board of Directors of the Company at its meeting held on 3rd November, 2020 had declared an interim dividend of Rs 1.5/- per share of face value of Rs 10/- each, which has already been paid by the company
The scrip is currently trading around Rs 572 on the BSE
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