Venus Pipes and Tubes Limited (VENUSPIPES) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue reached INR 231.3 crore, up 11.7% year-over-year; nine-month revenue at INR 700.4 crore, up 21.2% year-over-year, driven by strong export demand and capacity expansion.

• Export revenue surged 153% YoY in Q3FY25, with robust demand from the US, Middle East, Africa, and Europe; nine-month exports at INR 225.6 crore, up 216% YoY.

• Domestic market faced a slowdown due to muted CapEx from private and government sectors, but power sector demand is improving and market share gains are expected.

• Strategic capacity expansions and product diversification into fittings and high-grade tubes are underway, with ongoing capex projects to enhance profitability.

• Board approved unaudited financial results for the quarter and nine months ended December 31, 2024; limited review by statutory auditors found no material misstatements.

Financial highlights

• Q3 FY25 EBITDA was INR 37.2 crore (down from INR 39.1 crore YoY); EBITDA margin at 16.1%.

• Nine-month FY25 EBITDA grew 24.4% to INR 126 crore; margin at 18%.

• PAT for Q3 FY25 was INR 18 crore (down from INR 23.3 crore YoY); nine-month PAT was INR 69.2 crore (+13.6% YoY).

• Gross profit margin improved to 32.9% in Q3FY25 (+360 bps YoY) and 33.3% in 9MFY25 (+630 bps YoY).

• Revenue mix for Q3: 39% welded pipes, 54% seamless pipes, 7% others (scrap and fittings).

Outlook and guidance

• Revenue expected to grow at least 10% sequentially in the next quarter; FY26 revenue growth guidance above 20%.

• EBITDA margin expected to remain at current levels in the near term, with improvement anticipated as new products and CapEx come online.

• Long-term CAGR revenue growth target of over 20% through FY27.

• Capex projects for fittings and high-grade welded tubes on track for completion by March/September 2025; seamless pipes expansion by December 2025.

• Gross margin expected to settle in the 66%-68% range as product mix evolves.