Venus Pipes & Tubes Limited has announced the reaffirmation of its credit ratings by Infomerics Valuation and Rating Ltd. The company informed stock exchanges about this development in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Credit Rating Details

The rating agency has reaffirmed the company's credit ratings across both long-term and short-term banking facilities. The comprehensive rating review demonstrates the agency's continued confidence in Venus Pipes & Tubes' creditworthiness and financial stability.

Facility Amount Adjustment

Notably, the long-term bank facility amount has been reduced from ₹149.63 crores to ₹134.22 crores, representing a decrease of ₹15.41 crores. Despite this reduction in facility size, the rating agency maintained the same credit rating, indicating stable credit quality assessment.

Rating Significance

The IVR A rating with stable outlook for long-term facilities indicates adequate safety regarding timely servicing of financial obligations. The IVR A1 rating for short-term facilities reflects strong capacity for timely payment of short-term debt obligations. Both ratings remaining unchanged suggests consistent credit profile evaluation by the rating agency.

Company Profile

Venus Pipes & Tubes Limited operates as a manufacturer of stainless steel seamless and welded pipes, tubes, and U-tubes. The company holds multiple certifications including ISO 9001:2015, 14001:2015, and 45001:2018, along with PED 2014/68/EU, AD W/AD 2000-Merkblatt W0, and IBR certifications, demonstrating its commitment to quality and compliance standards.

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:

Financial Performance

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.