Venus Pipes Reports Record Q2 Revenue, Driven by Strong Export Growth
Venus Pipes & Tubes Limited achieved record quarterly revenue of INR 291.50 crores, a 27.30% year-on-year increase. Exports grew by 53% to INR 115.60 crores, contributing 40% of total revenue. Domestic market grew by 15%. The company expanded its seamless pipes capacity to 16,200 MTPA. Despite strong top-line growth, margins slightly compressed due to expansion costs. Venus Pipes maintains a 25% revenue growth guidance for the fiscal year, supported by a healthy order book of INR 490.00 crores.
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Venus Pipes & Tubes Limited , a leading manufacturer of stainless steel pipes and tubes, has reported a stellar performance for the second quarter, with record-breaking revenue and robust export growth.
Record-Breaking Revenue
The company achieved an all-time high quarterly revenue of INR 291.50 crores, marking a significant 27.30% year-on-year growth. This impressive performance was primarily driven by strong export sales, which reached INR 115.60 crores, representing a 53% increase compared to the same period last year.
Export Success and Market Diversification
Exports contributed a substantial 40% to the total revenue, highlighting Venus Pipes & Tubes' growing international presence. The company has seen particular success in European markets, while also maintaining a strong foothold in the Middle East. Despite some uncertainty in the U.S. market due to tariff concerns, the company's diversified export strategy has helped mitigate potential risks.
Domestic Market Growth
On the domestic front, Venus Pipes & Tubes recorded a 15% growth, supported by continued traction across key end-use industries such as power, engineering, and chemicals. The company's order book remains healthy at INR 490.00 crores, providing strong visibility for the coming quarters.
Capacity Expansion and Product Mix
Venus Pipes & Tubes has successfully commissioned an additional 1,800 MTPA of stainless steel seamless pipes and tubes capacity in November, bringing its total seamless capacity to 16,200 MTPA. This expansion is expected to support the company's growth trajectory and enhance its product offerings.
The revenue mix for the quarter was as follows:
| Product Category | Revenue Contribution |
|---|---|
| Welded Pipes | 38.90% |
| Seamless Pipes | 56.30% |
| Others | 4.80% |
Financial Performance
| Metric | Q2 Current | Q2 Previous | YoY Growth |
|---|---|---|---|
| Revenue | INR 291.50 cr | INR 228.90 cr | 27.30% |
| EBITDA | INR 47.40 cr | INR 40.90 cr | 16.00% |
| EBITDA Margin | 16.30% | 17.90% | -160 bps |
| Profit After Tax (PAT) | INR 26.10 cr | INR 23.70 cr | 10.00% |
| PAT Margin | 8.90% | 10.40% | -150 bps |
While the company has shown strong top-line growth, there has been a slight compression in margins due to ongoing capacity expansions and associated costs.
Future Outlook
Venus Pipes & Tubes maintains its guidance of 25% revenue growth for the fiscal year, supported by its healthy order book and ongoing capacity expansions. The company is also working on securing new approvals in the Middle East and Southeast Asia, which could further strengthen its market position.
The management remains optimistic about the opportunities in the power sector, particularly with expected tenders from BHEL and other players in the thermal power segment. Additionally, the company is preparing to enter the fittings market, which is expected to complement its existing product portfolio and potentially open up new customer segments.
As Venus Pipes & Tubes continues to navigate global market dynamics and expand its capabilities, it remains focused on delivering high-quality products and creating long-term value for all stakeholders.
Historical Stock Returns for Venus Pipes & Tubes
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.90% | +0.16% | -0.61% | -4.20% | -20.44% | +261.56% |
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