Hi-tech Pipes shares jump 4% after strong Q2 performance

Shares of Hi-tech Pipes Ltd extended their gains during the trading session on Monday after the company reported a stellar performance in the period ended on September 30, 2023. The company had announced its results over the weekend on Saturday, October 28.

Hi-Tech Pipes reported a more than 140 per cent rise in the net profit on year-on-year (YoY) basis to Rs 10.53 crore in the September 2023 quarter. The ERW pipes company had reported a net profit at Rs 4.34 crore in the same quarter previous financial year.

The company reported a 25 per cent rise YoY and its higher ever quarterly revenue from operations at Rs 746 crore in the Q2FY24,  led by higher sales volume, Improved sales realisation and higher sale of value-added product. Its revenue from operations came in at Rs 598.53 crore in the year-ago period.

Following the announcement of its earnings, shares of Hi-Tech Pipes surged more than 4 per cent to Rs 103.64 on Monday, with a total market capitalization of more than Rs 1,325 crore. However, the stock had settled at Rs 99.74 in the previous trading session on Friday. The stock is up 9 per cent in the last two sessions.

Total sales volumes for Hi-Tech Pipes increased by 17 per cent to one lakh tonnes in July-September 2023 period as compared to 0.85 Lakh tonnes in Q2 FY23 led by better demand for steel tubes/structural steel products and other value-added products. EBITDA for the quarter increased by 13 per cent to Rs 26.75 crore, while EBITDA per ton declined 4 per cent to Rs 2,663.

Hi-Tech Pipes' net profit surged 109 per cent YoY to Rs 18.5 crore for the half year ended on September 30, 2023. The company's bottomline came in at Rs 8.86 crore in the year ago period. H1FY23 led by better demand for steel tubes and structural steel products and value-added products.

Revenue from operations was up 25 per cent to Rs 1,388.17 crores as compared to Rs 1,114.69 crore in H1 FY24, led by higher sales volume and better sales realization as total sales volumes increased by 19 per cent to 1.85 lakh tonnes. EBITDA increased by 16 per cent to Rs 47.95 crore against Rs 41.40 crore in the year-long period.

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

Also read: Stock recommendations by analysts for October 30, 2023: Asian Paints, Shriram Finance, Venus Pipes and Bajaj Finance

Also read: Cello World IPO to open, TVS Motor, Marico Q2 earnings in Top News on October 30: Stock markets, Bank Nifty, Crude oil, gold rate outlook, new Mac launches expected at Apple’s ‘Scary Fast’ event

Also read: Top 10 stocks to watch on October 30, 2023: Adani Green, KPIT Tech, Jupiter Wagons, Pfizer, Zen Tech, DLF and more