Hi-Tech Pipes shares jump 10% after strong quarterly earnings

Shares of Hi-Tech Pipes surged about 10 per cent during the early trading session on Monday after the company reported a strong performance in the period ended on March 31, 2023. The company also announced a dividend for the financial year 2022-23.

Hi-Tech Pipes reported a 63 per cent jump in the standalone net profit on a year-on-year (YoY) basis at Rs 13.65 crore in the March 2023 quarter, compared to a net profit of Rs 8.38 crore in the same quarter last year. On a sequential (QoQ) basis, net profit surged about 50 per cent from Rs 9.14 crore in the December 2022 quarter.

Its revenue from operations was up 26 per cent to Rs 552.9 crore during the three months ended March 31, 2023, against an operational revenue of Rs 443.9 crore in the same period in the previous fiscal. Its EBITDA increased over 55 per cent to Rs 17.38 crore for the period.

Following the announcement of results, shares of Hi-Tech Pipes jumped about 10 per cent to Rs 83.50 on Monday as the company commanded a total market capitalization of Rs 1025 crore. The scrip had settled at Rs 76.21 on Friday, rising more than a per cent.

Watch: Bank Nifty hits fresh record high, may rally further; ICICI Bank, Axis Bank, SBI may rise

For the entire year ended on March 31, 2023, Hi-Tech Pipes' net profit was marginally down at Rs 29.04 crore with revenue from operations improving 23 per cent to Rs 1,860.55 crore.

Shares of Hi-Tech Pipes have gained about 140 per cent from its 52-week low at Rs 32.30 on June 23, 2022. The scrip is flat in the last one month, while it has dropped more than 10 per cent in the year 2023 so far. It has rallied more than 1,000 per cent from its Covid-19 lows about three years ago.

The company board of Hi-Tech Pipers also recommended a final dividend of Rs 0.025 per equity with a face value of Rs 1 each, subject to approval from the shareholders of the company.

Uttar Pradesh-based Hi-Tech Pipes owns and operates integrated manufacturing facilities at Sikandrabad in Uttar Pradesh, Sanand in Gujarat and Hindupur in Karnataka. It is among the lead suppliers and manufacturers of ERW pipes, which are extensively used in agriculture, industry and construction activities like scaffolding and casing in bore wells.

Also Watch: Time Travel with LIC: A 200-year journey of how European-origin Oriental Life Insurance became Life Insurance Corporation of India