The shares of stainless steel pipes and tube manufacturers gained up to 8 percent after the company’s net profit and revenue increased by 109 percent and 52 percent respectively in the third quarter.
With a market capitalization of Rs 3,078.92 crore, the shares of Venus Pipes & Tubes were trading at Rs 1,517.00 per share, increasing around 4.40 percent as compared to the previous closing price of Rs 1,453.00 apiece.
Looking into the company’s Performance, Venus Pipes & Tubes Ltd’s revenue increased by 8 percent on a quarter-on-quarter basis from Rs. 191 crores in Q2FY24 to Rs. 207 crores in Q3 FY24. Further, revenue increased by 52 percent year on year from Rs. 136 crores in Q3FY23 to Rs.207 crores in Q3FY24.
Venus Pipes & Tubes Ltd’s net profit increased by 15 percent on a quarter-on-quarter basis from Rs.20 crore in Q2FY24 to Rs. 23 crore in Q3FY24. Further, net profit increased by 109 percent yearly from Rs. 11 crore in Q3FY23 to Rs.23 crore in Q3FY24.
The business has nearly quadrupled its Seamless Pipes capacity, from 3,600 MTPA to 9,600 MTPA. Venus has also extended the size of seamless pipes, which can now be manufactured in diameters ranging from 6 to 168.3mm.
In Q1FY24, the firm announced an additional expenditure of 400 MTPM for seamless pipes, with 200 MTPM operational in Q3FY24 and the remaining 200 MTPM scheduled to begin operations in Q4FY24.
The business has also increased its Welded Pipes capacity from 8,400 MTPA to 24,000 MTPA. The firm has also expanded the size of its welded pipes, allowing it to make pipes with diameters ranging from 6 to 1,422.4 mm. This will allow it to grow into new markets where larger diameter pipes are necessary.
Venus Pipes and Tubes Limited manufactures and exports stainless steel pipes and tubes. The firm manufactures stainless steel tube goods in two major categories: seamless tubes/pipes and welded tubes/pipes, under which five types of products are created.
Written by:- Abhishek Singh
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