PC: MoneyLife
Venus Pipes & Tubes, one of the top manufacturers and exporters of stainless steel pipes and tubes, has seen a 22% drop in net profit during the December quarter of fiscal year 2024-25. The net profit of the company was at ₹18 crore, down from ₹23.27 crore during the same period in the previous year. In spite of this decline in profit, Venus Pipes registered a significant rise in overall income, which increased by 11.7% to ₹231.3 crore, from ₹207.1 crore in the same quarter last year.
Export Demand Drives Revenue Growth
The firm underscored that its revenue growth was largely fueled by strong export demand. Exports rose by a whopping 153% year-over-year, thanks to high demand from United States, Middle East, and Africa markets for welded tubes and pipes. Exports currently represent 38.5% of the firm’s total revenue, pointing to a very strong global presence.
Arun Kothari, Managing Director of Venus Pipes & Tubes, observed that export performance was robust but domestic sales were negatively impacted by weak capital spending in the private and government sectors. This trend indicates weakness in the local market that may affect future revenue streams.
Year-to-Date Performance
During the first nine months of FY25, Venus Pipes saw its net profit grow by 14% to ₹69 crore, with revenue growing 21% to ₹700 crore. This shows the company’s overall growth pattern despite recent quarter-wise woes. The management is confident about growth in the future, supported by a healthy order book and increased production capacities.
Capacity Expansion Plans
Expansion of its production capacities is also on the agenda of Venus Pipes. The company is set to finish a high-grade stainless and titanium welded tubes capacity expansion project with a production capacity of 3,600 metric tonnes per annum (MTPA) by the end of March 2025. Furthermore, a Phase 2 expansion project plans to add capacity for seamless pipes and tubes by 4,800 MTPA, with production slated to begin in December 2025. These expansions are meant to address increasing demand for stainless steel products locally and globally.
In short, even though Venus Pipes & Tubes witnessed a fall in net profit for the December quarter, its top-line growth and strong export performance suggest a healthy business model. The company’s continuous capacity expansion and strategic concentration on high-demand markets make it poised for growth in the future. While facing headwinds in the domestic market, Venus Pipes continues to focus on expanding its production capacities and sustaining its competitive advantage in the stainless steel space.
