Hi-Tech Pipes shares rise 4% after strong Q1 numbers and sales growth

Shares of Hi-Tech gained more than 4 per cent during the early trading session on Wednesday after the announcement its results for the quarter ended on June 30, 2023. The company reported a strong performance on a sequential basis, driven by strong revenue growth.

Hi-Tech Pipes has reported around an 80 per cent rise in its net profit on a year-on-year (YoY) basis to Rs 8.02 crore during the quarter ended June 30. It had clocked Rs 4.48 crore net profit during the April-June period of the preceding 2022-23 fiscal, the company said in a statement on Monday.

Revenue from operations surged 24 per cent to Rs 642.17 crore in the June 2023 quarter, which was at Rs 516.17 crore in the same quarter previous year. EBITDA came in at Rs 21.20 crore, up 19 per cent on a yearly basis to Rs 17.83 crore in the same quarter previous year.

Shares of Hi-Tech Pipes rose more than 4 per cent to Rs 80.56 on Wednesday, commanding a total market capitalization of more than Rs 1,040 crore, after the announcement of results for the June 2023 quarter. The scrip had settled 77.11 on Monday.

Total sale volumes rose 21 per cent to 84,500 tonnes in Q1FY24 compared to 70,000 tonnes in the year ago period. EBITDA per tonne stood eased to Rs 2,508, compared to Rs 2,545 during the period under review on the back of decrease in the steel prices in the quarter.

Commenting on its operations performance, the sales of the coated products of the company like GP coils, GC sheets, color coated coils, color profiles sheets picked-up well. The company also successfully secured government tenders to supply galvanised pipes for multiple projects under the 'Jal Jeevan Mission,' it said in the statement.

Hi-Tech Pipes owns and operates integrated manufacturing facilities at Sikandrabad in Uttar Pradesh, Sanand in Gujarat and Hindupur in Karnataka. The company recently signed an agreement with the Uttar Pradesh government to set up a steel manufacturing facility at an investment of Rs 510 crore.

Earlier this year, Hi-Tech Pipes had announced sub-division of its equity shares in 1:10 ratio, wherein each share of the company with a face value of Rs 10 each was split in 10 equity shares with a face value of Re 1 each. The corporate action had taken place in March 2023.

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.

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