Venus Pipes and Tubes Limited (VENUSPIPES) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue reached INR 228.9 crore, up 19.6% year-over-year; H1 FY25 revenue at INR 469.1 crore, up 26.4% year-over-year.

• Export revenue grew 2.7x year-over-year, now comprising 33% of total revenue, driven by strong demand in Europe, US, and Middle East.

• All-time high order book of INR 340 crore, with robust demand across sectors and continued investments in talent.

• Domestic sales impacted by heavy rainfall, causing order spillover, but demand outlook and order pipeline remain strong.

• Approved unaudited financial results for the quarter and half-year ended September 30, 2024, reviewed by the Audit Committee and statutory auditors.

Financial highlights

• Q2 FY25 EBITDA at INR 40.9 crore, up 17.5% year-over-year; H1 FY25 EBITDA at INR 88.9 crore, up 42.5%.

• Q2 FY25 PAT at INR 23.7 crore, up 16.7% year-over-year; H1 FY25 PAT at INR 51.2 crore, up 35.8% year-over-year.

• Gross profit for Q2 FY25 at INR 77.6 crore, up 42.6% year-over-year; gross profit margin for H1 FY25 at 33.4%.

• Export revenue for Q2 FY25 at INR 75.6 crore, up 165% year-over-year; H1 FY25 export revenue at INR 136.5 crore.

• Revenue mix: 33% welded, 57% seamless, balance others.

Outlook and guidance

• Expecting continued strong export growth and expansion into new geographies in H2 FY25.

• Targeting 20%-25% annual volume growth over the next three years.

• Margin expansion anticipated after 3-4 quarters as new capacities ramp up.

• CapEx for FY25 projected at INR 150 crore, with major projects on track for March 2025 completion.

• Ongoing capacity expansion and product diversification into fittings and value-added welded tubes to drive future growth.