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

Executive summary

• H1 FY 2025 revenue reached INR 469.1 crore, up 26.4% year-over-year, with Q2 revenue at INR 228.9 crore, up 19.6% year-over-year.

• Export revenue surged 165% year-over-year in H1 FY 2025, now comprising 33% of total revenue, driven by strong demand in Europe, US, and Middle East.

• Robust volume growth of 30% year-over-year for H1 FY 2025 across both seamless and welded pipes.

• All-time high order book of INR 340 crore, with continued investments in talent and market share gains.

• Unaudited financial results for the half-year ended September 30, 2024, were approved, and a new Chief Strategy Officer was appointed.

Financial highlights

• Q2 FY 2025 EBITDA at INR 40.9 crore, up 17.5% year-over-year; H1 FY 2025 EBITDA at INR 88.9 crore, up 42.5% year-over-year.

• Q2 FY 2025 PAT at INR 23.7 crore, up 16.7% year-over-year; H1 FY 2025 PAT at INR 51.2 crore, up 35.8% year-over-year.

• Gross profit margin improved by 770 bps YoY to 33.4% in H1 FY 2025; EBITDA margin at 19.0% (+220 bps YoY); PAT margin at 10.9% (+80 bps YoY).

• Export revenue for H1 FY 2025 grew 165% YoY to Rs. 136.5 crore; domestic revenue slightly declined due to order spillover.

• Net profit before tax and exceptional items for the half-year ended September 30, 2024, was Rs. 687.54 million.

Outlook and guidance

• Expecting continued strong export growth and expansion into new geographies in H2 FY 2025.

• Targeting market share in low double digits in coming years, driven by new product lines and capacity expansion.

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

• Margin levels expected to remain stable for the next 3-4 quarters, with potential for future expansion.

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