Fall in crude to help margin improvement: Texmo Pipes

In an interview to CNBC-TV18, Satyendra Rathi, Chief Financial Officer of Texmo Pipes said there would be clear improvement in margins and profits going forward due to fall in petroleum prices.Fall in crude prices led to reduction in prices of polyvinyl chloride (PVC) and high-density polyethylene (HDPE) products to the tune of 15-20% so far, he said. Margins for the company are likely to improve in the current quarter from 9.4 percent reported in Q1. They also expect to turn profitable now, said Rathi.Moreover, the benefit of fall in prices is passed on to the end users, he added.  PVC and HDPE business is 60% of the entire order book, said Rathi.Texmo Pipes is a market leader in plastic pipes and fitting. The Company manufactures polyvinyl chloride (PVC) pipes and suction hose pipes, and high-density polyethylene (HDPE) pipes. Beside this the company introduced new diversified products like CPVC Pipes, Molded Fittings of PVC and SWR, DWC Pipes, Drip Inline.

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