TEXMOPIPES - Texmo Pipes

📊 NSE: TEXMOPIPES 🏢 Plastics Products 📅 Last Updated: 12/14/2025 14:17

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations fell 32% YoY to INR 366.06 Cr. Segment performance: HDPE Pipe dropped 60.1% to INR 104.49 Cr, PVC Pipe fell 9.4% to INR 165.50 Cr, CPVC Pipe fell 89.3% to INR 0.07 Cr, and Trading Sale grew 19.7% to INR 36.83 Cr.

Geographic Revenue Split

Not disclosed in available documents, though operations are primarily centered in Madhya Pradesh (Burhanpur and Pithampur).

Profitability Margins

Return on Net Worth improved to 11.65% from 7.28% (a 60.11% increase) due to higher profit after tax. Return on Capital Employed (ROCE) declined to 8.80% from 12.81% (a 31.25% decrease) due to lower EBIT and higher capital employed.

EBITDA Margin

Not explicitly disclosed, but EBIT decreased as reflected in the 31.25% drop in ROCE.

Capital Expenditure

Consolidated purchase of Property, Plant and Equipment and Intangibles was INR 5.39 Cr (INR 538.67 lakhs) for the period.

Credit Rating & Borrowing

The company maintains a credit rating of 'IND BBB+' for its fund-based facilities.

⚙️ Operational Drivers

Raw Materials

Key raw materials include PVC, HDPE, and CPVC resins, which are subject to significant price volatility.

Capacity Expansion

Subsidiary 'Shree Venkatesh Industries Private Limited' completed its first full year of operations in Pithampur, Indore region, adding new products to the manufacturing portfolio.

Raw Material Costs

Raw material price volatility impacts end-users as costs are passed down; prices are currently showing slight improvement which is expected to positively impact revenue outlook.

📈 Strategic Growth

Growth Strategy

Growth is targeted through the expansion of the product range at the Pithampur subsidiary and leveraging improving raw material price trends to stabilize margins and operational outlook.

Products & Services

PVC Pipes, HDPE Pipes, CPVC Pipes, CPVC Fittings, Moulding Fittings, and Roto Water Tanks.

Brand Portfolio

Texmo.

New Products/Services

The subsidiary in Pithampur is manufacturing and adding 'other products' to its portfolio following its first full year of operations.

Market Expansion

Expansion focused on the Indore region through the Pithampur industrial area facility.

🌍 External Factors

Industry Trends

The industry is currently facing volatility but raw material prices are slightly improving, which is expected to develop a positive revenue and operational outlook.

Competitive Landscape

The company operates in a market with both organized and unorganized sectors, where raw material price fluctuations impact competitive positioning.

Competitive Moat

Moat is supported by a strong internal control framework using SAP ERP and a permanent workforce of 331 employees to ensure operational efficiency.

Macro Economic Sensitivity

Highly sensitive to unseasonal rainfall and volatility in global raw material prices which affect the plastic products industry.

Consumer Behavior

Demand is affected by the ability of manufacturers to pass down costs to end-users in the downstream industry.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Ind AS 108 (Segment Reporting), SEBI LODR Regulations, and the Companies Act 2013.

Taxation Policy Impact

Direct taxes paid (Net) amounted to INR 2.04 Cr (INR 204.33 lakhs).

Legal Contingencies

The company paid a penalty of INR 0.25 Cr (INR 25 Lakhs) under SEBI Regulation in FY23 for matters related to FY12. There are pending litigations regarding uncertain tax positions under direct and various indirect tax laws.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility and unpredicted rainfall are primary risks that can significantly impact operational results, as seen in the 32% revenue decline.