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 hit an all-time high of INR 89.1 crore in Q3, up 153% year-over-year, with exports now 38.5% of total revenue; nine-month exports surged 216% to INR 225.6 crore, led by demand from the US, Middle East, Africa, and Europe.

• Domestic market faced a slowdown due to muted CapEx from both private and government sectors, but power sector demand, government infrastructure focus, and new product launches are expected to revive growth.

• Strategic capacity expansions and product diversification into fittings and high-grade tubes underway to position as a one-stop piping solution provider.

• Order book stands at approximately INR 350 crore, covering about four months of sales.

• Board approved unaudited financial results for the quarter and nine months ended December 31, 2024.

Financial highlights

• Q3 FY25 revenue: INR 231.3 crore (up 11.7% YoY); nine-month revenue: INR 700.4 crore (up 21.2% YoY).

• Q3 EBITDA: INR 37.2 crore (down from INR 39.1 crore YoY); EBITDA margin at 16.1%. Nine-month EBITDA: INR 126 crore (up 24.4% YoY), margin at 18%.

• PAT for Q3 FY25: INR 18 crore (down from INR 23.3 crore YoY), margin at 7.8%. Nine-month PAT: INR 69.2 crore (up 13.6% YoY), margin at 9.9%.

• Gross profit margin improved to 32.9% in Q3 FY25 (+360 bps YoY) and 33.3% in 9MFY25 (+630 bps YoY).

• Revenue from operations for Q3 FY25 was ₹2,313.03 million, up from ₹2,071.27 million year-over-year.

Outlook and guidance

• Revenue expected to grow at least 10% sequentially in the next quarter; FY27 revenue CAGR guidance above 20%.

• Margins expected to remain at current levels in the near term, with improvement anticipated as new products and government initiatives take effect.

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

• Anticipates continued export growth and further market share gains through new value-added products and expanded capacity.

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