Venus Pipes and Tubes Limited (VENUSPIPES) Q1 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 240.1 crore (₹2,401.38 million) in Q1 FY25, up 34% year-over-year, with strong export growth and robust order inflows across diverse industries.

• EBITDA rose 74% to INR 47.9 crore, with margins reaching 20%; PAT increased 58% to INR 27.5 crore, with PAT margin at 11.5%.

• Export revenue surged 691% year-over-year to INR 60.9 crore, now contributing 25% of total revenue, up from 4% in Q1 FY24.

• Strong order book and increasing demand from oil & gas, pharma, engineering, and power sectors.

• Phase 1 capex for value-added product lines on track for completion by March 2025.

Financial highlights

• Revenue from operations: INR 240.1 crore (₹2,401.38 million) in Q1 FY25 vs INR 179.6 crore (₹1,796.12 million) in Q1 FY24, up 34%.

• EBITDA: INR 47.9 crore, up 74% year-over-year; EBITDA margin at 20% vs 15.4% last year.

• PAT: INR 27.5 crore, up 58% year-over-year; PAT margin at 11.5% vs 9.7% last year.

• Gross profit margin rose to 32.9% from 22.9% year-over-year.

• Basic and diluted EPS for Q1 FY25 were ₹13.58 and ₹13.51, respectively, compared to ₹8.58 in Q1 FY24.

Outlook and guidance

• Export momentum expected to continue, with robust order book from Europe, US, and Middle East.

• Exports expected to remain above 25% of total revenue for FY 2025, with potential to exceed 30% as new geographies are targeted.

• Strategic initiatives and capacity expansion to drive sustained growth and profitability; Phase 1 and 2 capex projects for value-added fittings and welded/seamless tubes to be completed by March and December 2025, respectively.

• Margins anticipated to improve by 3%-5% over last year’s blended EBITDA per kg.

• Domestic demand expected to pick up post-elections, with continued focus on both domestic and export markets.