ladies and gentlemen we welcome you all to the Q3 and 9 Monon fy2 earnings conference call of Venus pipes and tubes limited hosted by embit Capital this conference call may contain forward-looking statements about the company which are based on belief opinion and expectations of the company as on the date of this call these statements are not the guarantees of feuture performance of the company and may involve risk and uncertainties that are difficult to predict as a reminder all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes should you need assistance during the conference call please signal an operator by pressing start then zero on a touchstone phone please note that this conference is being recorded I now hand the conference over to MrDr Jane from embit capital thank you and over to you sir hello everyone welcome welcome to Venus pipes and tubes limited Q3 fi25 earnings call from the management today we have with us MrArun Kari managing director and MrKunal Buna Chief Financial Officer thank you and over to you sir for your opening remarks n sir yeah your line is unmuted management your line is unmuted a yeah yes sir good evening and a warm welcome to everyone on the Q3 and 9 month f25 earning call for winners pip and tubes limited I have been joined by MrKunal Buna CFO and SJ our investor relation advisor we have uploaded our Q3 fi25 investor presentation on sto exchanges and Company's website and I hope you had an opportunity to go through the same we are pleased to report a stud performance for both Q3 and the 9 Monon ended f25 in Q3 Revenue reached at rupees 231. 50 cres reflecting a solid growth of 11. 7% while for the 9 months of f25 revenues stood at R 700 CR making an impressive increase of 21.
2% this growth has been driven by a strong volume increase of more than 10% for Q f25 and more than 20% for a 9 month f25 on a year on-ear basis the continued growth is primarily attributed to our exceptional export performance which has been a significant contributor alongside increased penetration in our key Market our strategy of expanding our geographical R and deeping relationship with our customers in existing bus is yielding positive results on the operation fronts speaking of segment wise performance our s segment delivered a revenue growth of 8% for the quarter and 177% on a 9mth basis reflecting stady demand and increasing Market penetration on the wed by front revenues grow by 4% for the qu and 16% over the 9 month periods coming to the geographical performance speaking about export F this quarter marks out best export performance with alltime high export revenues of rupees 89. 1 cres in the quarter and impressive 153% year onye growth the share of export share of export Rue is stood at 38. 5% for the quarter the highest recorded for any period on a 9 Monon basis export Serv by 216% to rup 2 25.
6 cres reflecting our strong International Market penetration this exceptional growth in exports have been driven by several key factors we have successfully created our presence in the US Middle East and Africa Market with significant shipments of wed pipes during this quarter this achievement is the result of our strategic efforts including the establishment of a dedicated marketing team that has played a crucial role in driving the performance additionally we have actively participated in dealers events trade fairs and other industry forums to anounce our visibility and Foster relationship with key stakeholders this initiative are Del tangible results and we are confident in our ability to replicate the strong performance in Europe Within These Market Europe continue be to be our largest export Market with an extensive dealer Network and growing acceptance of our products we have been able to maintain a strong foothold in the region our focus on offering high quality products competitive pricing and Superior customer service has reinforced our Market position and we remain confident in sustain sustaining our growth trajectory in this key geography we will continue to build on this momentum by further strengthening our presence in international markets particularly in the Middle East and South Africa after Europe and us while also expanding our product portfolio our commitment to Quality a customer cenic approach and a strategic Market initiative position as well position as well for sustained export growth in the coming quarters speaking of the domestic Market the domestic Market has been facing a period of slowdown primar due to macroeconomic factor we have observed muted capital expenditure from the both private and government sectors particularly in the post election period and we anticipate that this trend could extend further in the near term despite this challenges winners Contin continue to be a preferred brand among customers driven by our Superior product offering and longstanding customer relationship we are confident of creating our presence in the domestic Market have having recently onboarded experience and season industry professionals bringing valuable expertise that will help the drive growth and increase our Market pention gaining from unorganized players especially we are seeing very good demand in the power sector of our pipes and Tube business addition the finance budget 2025 emphasis on increasing domestic consumption is expected to stimulate economic activity leading to a Revival in capital expenditure the government's focus on infrastructure development and Manufacturing sector growth will likely boost demand for high quality piping Solutions presenting significant opportunities for winners in the coming quarters we continue to secure approval in both domestic and Export market across Industries such as oil and gas power and Engineering reflecting the strong trust in the quality of our products these appro not only reinforce our Market credibility but also enable us to diversify across multiple Industries further exing our growth Prospect moving forward I would like now like to spend some time on our vision for the future as we continue to expand and evolve our Focus remains on long-term growth and leadership in the standless steel pipes and Tube industry we are committed to extending our Market position and delivering value to our stakeholders with a road map for expansion and Innovation we are actively investing in increasing our cap capabilities and announcing our product offering this journey began a few years ago with a strategic capacity expansion of more than 3x allowing us to not only broaden our product portfolio but we also backward integrated our El with addition of ps9 for manufacturing of Hol bars for seamless P we achieved strong capacity utilization for both seamless and welded pipes on the B of growing export and domestic penetration as part of our as part of our vision for sustained growth we have announced CeX to diversify into valued products by introducing fitting and highr Tu positioning asent One Stop piping solu Solutions provider for our customers this Mo not only enhance our product offering but also strengthen our ability to serve a wider range of application across Industries in coming years we are looking to push boundaries of innovation and Manufacturing Excellence by expanding into highr ex pipes and tubes products that are technically complex require Advanced Equipment and server critical industri securing approval for this sector is an intricate and highly exent process demanding visous quality standards and compliances however with our deep industry expertise experience theme and longstanding customer relationship we will be in position to penetrate and establish a strong presence in these high value segments at WN our growth strategy remains clear continuous innovation expansion and Market lead leadership with a strong Foundation in place and unweaving commitment to Quality and customer satisfaction we are confident in our ability to assure long-term vision and create fasting lasting value of our stakeholders our order book remains strong at approximately rupees 350es reflecting the continued trust and confidence of our customers lastly an update on the capex plan phase one of the announced capex which includes St steel and titanium wed tubes of 3,600 mric T perm and fitting was initially set to commence in operation March 2025 while the St still in titani Project remains on schedule the fitting segment is expected to commence in the H one of the f26 meanwhile the phase two expansion adding 4,000 mric T per of seamless Pipe and Tube remains on track to begin operation in December 20 25 please note we have an important addition to face to cap we will be we will be announcing our existing p l capacity to the tune of additional 4,800 metricon perm which will serve the capacity which will serve the capacity increase in the steamless pike with stady growth in domestic and Export Market strategic capacity expansion and a strong focus on high value products we are well positioned for sustained success our ongoing capex project will further create the strong our Market leadership and enhance our product offering backed by robot stream and operation excellence and a commitment to Quality we remain confident in draing long-term Valu for our all stakeholders with this I I hand over to mRNA our CFO we are pleased to share that our company has delivered a steady performance achieving growth across Three Financial metrics including Revenue e beta and P on revenue frund revenue from operation for Q3 f 25 St rupes 2 31. 3 CR as compared to rupes 27. 1 CR during Q3 fi25 achieving a growth of 11.
7% year on year basis revenue for 9 month f 25 stood at R 7. 4 CR witnessing a strong growth of 21. 2% and we have witnessed a strong volum growth of 20% across W and S side Rue WI for the quarter was 39% from wed pip 54% from s pip and 7% from others for 9 month f 25 Revenue vcation was 37 from wed pipe 56% from sess pipe and 7% from other revenue from other category increase this qu driven by sales from scrap and trading revenue from fittings growth in simar segment was 8% on year year basis and W segment registered a growth of 4% for qfi 25 on year on year basis in term of Revenue growth in the S segment was 177% on year and year basis and W segment registered growth of 16% for 9 month sr25 on year on year basis in terms of Revenue on Thea front our IA for the quarter stood at R 37.
2 CR as compared to rupes 39. 1 CR in Q3 f24 IA Mar for the quarter sh at 16. 1% on 9 month fi25 basis IA saw a growth of 24.
4% standing at R 126 with a margin at 18% but for the Q3 fi25 is rupes 18 CR compared toes 23. 3 CR in Q3 fi 24 and margin stood at 7. 8% on 9 month fi25 basis F show a growth of 13.
6% standing at rupees 69. 2 CR a growth of 13. 6% which a margin at 99.
9% last the company has received additional rupes 8. 16 in February from holders of convertible warrant in accordance with the terms of preferential allotment taking the total amount received till date to R 35. 6 cres in closing we are optimistic about the journey ahead and fully committed to driving sustained growth we are excited to push forward and L the V sitting new Benchmark in this industry with this I would like to open the floor for Q thank you very much we will now begin the question and answer session anyone who wishes to ask a question may press St and one on the touchone telephone if you wish to withdraw yourself from the question que you may press star and two participants are requested to use handset while asking a question ladies and gentlemen we'll wait for a moment while the question que assembles first question is from the line ofha tala from Nama please go ahead uh good evening sir and thanks a lot for the opportunity just couple of questions from my end we have seen sudden domestic demand slow down uh could you mention the reasons we understand export share is increasing why has domestic demand slow down that's one and why has margins Fallen to about 1600% that's the first one so primally yeah if you see from the margin perspective so uh because of the domestic subdue demand there had been pressure on that side and also the pressure must be felt at the site of export from the uh some uh few more people entering the export territory and and also if you see in this quarter uh uh we have exported uh welded pipes and Tube which form around 38% of the total export value on the side ofad which was earlier on a very Lower Side the last year on year a so on the side of w also we have developed new geography like Middle East Africa and also a portion of it has gone to USA But at the initial level we have been quite competitive as compared to to Pate those market and on the side of domestic there had been subd demand we seen across many of the industry but uh but recently what we are seeing there there is a amount of traction on the side of power site where many of the tenders are recently being started floated which you see because of that there seems to be demand going forward on that side given pricing is also very volatile along with certain margin volatility would you like to give some guidance on the growth going forward yeah uh for the coming quarter we believe it should be around the revenue side we believe which should be at least 10% of this water Revenue what we have achieved and and going for three years down the line by f27 we still believe there should be a growth of C growth of more than 20% and margin margin on a f 27 he still beli it should hold more than 20% but coming quarters I believe it should be the same level which have been achieving this quarter could you also give the volume numbers like you mentioned of course the volume was 10% odd for this particular quarter can we get seamless as well as welded volumes like how much would have seamless grown versus understand the product mix yes for the quter see it was on the side of more than 15% growth and on the side of w it was around 5% growth understood let me get back thanks thanks jam and all the best thank you before we move to the next question a remind reminder to the participants to ask a question you may press star and one next question is from the line of weoka from goam La fintech private limited please go ahead yeah thank you for the opportunity sir uh my question is like uh as a company expanding in a Europe us Middle East as you mentioned right can you provide details on the specific strategies for each these regions in including the timelines for achieving the market penetration and the any specific growth Target for this especially for the if you say in the Europe Market already V is a very good pres we are doing export since last four to five quarters or every every our export is going increasing same way in the US market also in the last quarter we had created very good presence we are uh in going forward we are also pting for some other geography also so which will also come in the mostly our pres has already created or which will grow in the coming two to three quarters so Europe is already you can see very good penetration of the Venus in Europe Market as well as in us also we had created the penetration now we have the more focus on us and Africa market then next two to three quarters you will get the uh good volume from these two places okay okay and uh another question is uh as uh compan has increased its Market sh in the Sim pipes right so what are the steps being taken to further increase Market sharing Sim pipes and wed pipes see uh as you said uh we are working on many multiple geographies across the world and also many of the sect across the country and uh so those steps are being taken uh as we said we are getting approved from engineering oil and gas and these sectors and as we see the market going forward Middle East us and African Africa African countries so we see many opportunity going forward and and also we are seeing demand from power side to these all geography sectors will help us to grow grow our m going forward okay thank you thank you participants to join the question Q you may star N1 next question is from the line of through Jen from Ambit Capital please go ahead hi sir I had a couple of questions one is that you know been a trend in the last quarter as well but we've seen a a quite sharp uptick in employee cost right so it's close to about 12% of sales now so just wanted to understand uh you know how does this stabilize going forward or uh this will keep on inching up as we move forward uh since Drw already we are told we are already planned the capex for the new highr development of the project so for that purpose we are the some experience marketing profession as well as some also technocrats at the operation LEL also so all these marketing profession technocrats will come in the coming quarters uh because all the things will be coming operation in the next one or two quarters so that's why cost segment increasing so sir is it safe to say that this cost will remain elevated for the next couple of quarters yeah but you see it is around 4.
5% we believe it can go a bit around five sort of number or slightly more than five in coming quarters not to that level we believe you're talking about 5% of Revenue total yeah of Revenue okay and and similarly even I I think uh other expenses has kind of zoomed so I think sir mentioned about it but how should that Trend going forward if you see total it is around 16. 8% we believe it can also inch slightly higher because the entire backward integration facilities working apart from that when you export there are ocean F and others which are likely high on that side as compared to the domestic R cost but we believe sort of 16. 8 can go up to 17.
8 17.
