Prince Pipes reported its Q2FY22 earnings results. The current capacity utilization for the company is at 60-65 percent.
“We still have a long way to go and we are hungry for growth,” said Nihar Chheda, Associate Vice President-Corporate Strategy of the company, in an interview with CNBC-TV18.
Prince Pipes reported a 66 percent growth in revenue in Q2FY22. “This was backed by 22 percent volume growth,” he stated.
This robust volume growth has been driven by the plumbing and the SWR part of the portfolio.
The company was aggressive in network and product expansion in Q2FY22 and saw the highest quarterly sales in its history. “September quarter has been the highest quarterly sales for us in our history and we are looking to keep this going forward,” he said.
The company raised capital for its seventh plant that it had put up in Telangana.
“We have put up a very small initial capacity. Over the next two-three years, we would be ramping up that capacity in a significant manner. South market is something where we have a huge potential,” he said.
Traditionally, the north and west have been the home markets for Prince Pipes.
“This integrated facility in the south of India should help the company gain market share in the south as well as be a decentralization lever in terms of expanding the margins going forward,” he explained.
The company has been passing on the cost in a phased manner.
“So that we are able to make these market share gains, have the volume growth and the resultant operating leverage benefits and at the same time, try to keep our pricing power intact,” he said.
For the full interview, watch the accompanying video.