Hi Tech Pipes Reports Stable Profit Amid Income Dip in Q2 FY25
Hi Tech Pipes, a leading player in the piping industry, has reported a marginal growth in net profit despite a significant dip in total income in Q2 FY25. The company's chairman, Ajay Kumar Bansal, highlights the strategic focus on value-added products an
Hi Tech PipesProfitQ2 Fy25Piping IndustryAjay Kumar BansalReal Estate NewsNov 06, 2024
However, the company's net consolidated total income saw a decline of 18.52%, falling to Rs 706.86 crore in Q2 FY25 from Rs 867.50 crore in the corresponding quarter of the previous fiscal.
Ajay Kumar Bansal, the Chairman and Managing Director of Hi Tech Pipes, attributed the decline in revenue from operations to the steep reduction in raw material prices. Despite this, the company has shown resilience by focusing on value-added products and efficient cost management. This strategic approach has resulted in a significant 57.66% growth in EBITDA, with EBITDA per tonne rising by 28.66% year-on-year.
Bansal further highlighted the financial improvements the company has made, including a reduction in net working capital days, an improvement in the debt-equity ratio, and better returns with ROCE increasing to 14.53%.
Post the quarter ended September 30, 2024, Hi Tech Pipes completed a qualified institutional placement (QIP). The company allotted 2,69,96,734 equity shares of face value Rs 1 each to eligible qualified institutional buyers at an issue price of Rs 185.50 per equity share (including a premium of Rs 184.50 per equity share), aggregating to Rs 501 crore. This move is expected to strengthen the company's financial position and provide additional resources for future growth.
In terms of sales, the company has seen a significant increase in volumes. Total sales volumes grew by 22.50% to 1.23 lakh tonnes in Q2 FY25, up from 1 lakh tonnes in the same period last year. This growth is primarily attributed to the increased demand for steel tubes, structural steel products, and value-added products.
Hi Tech Pipes remains committed to its strategic initiatives and is optimistic about the future. The company's focus on innovation, cost efficiency, and market diversification positions it well to navigate the challenges and capitalize on the opportunities in the piping industry.
About Hi Tech Pipes
Hi Tech Pipes is a prominent player in the piping industry, known for its high-quality steel pipes, tubes, and related products. The company has a strong presence in both domestic and international markets, serving a wide range of sectors including oil and gas, power, construction, and infrastructure. Hi Tech Pipes is committed to delivering superior products and services while maintaining a strong financial position and sustainable growth.
Frequently Asked Questions
What was Hi Tech Pipes' net consolidated profit in Q2 FY25?
Hi Tech Pipes' net consolidated profit in Q2 FY25 was Rs 18.11 crore, showing a marginal growth of 0.33% compared to Rs 18.05 crore in the same period last year.
How much did Hi Tech Pipes' total income decline in Q2 FY25?
Hi Tech Pipes' net consolidated total income declined by 18.52% to Rs 706.86 crore in Q2 FY25, compared to Rs 867.50 crore in the same period last year.
What was the reason for the decline in Hi Tech Pipes' revenue from operations?
The decline in Hi Tech Pipes' revenue from operations was primarily due to the steep reduction in raw material prices.
What was the growth in EBITDA for Hi Tech Pipes in Q2 FY25?
Hi Tech Pipes reported a significant 57.66% growth in EBITDA in Q2 FY25.
How much did Hi Tech Pipes raise through its qualified institutional placement (QIP)?
Hi Tech Pipes raised Rs 501 crore through its qualified institutional placement (QIP) by allotting 2,69,96,734 equity shares at an issue price of Rs 185.50 per share.
Related News Articles
Indian Realty Giants Unload Properties Worth Rs 1.17 Lakh Crore in FY24
Leading real estate companies in India, such as Macrotech Developers and Signature Global, have sold properties worth a staggering Rs 1.17 lakh crore in FY24.
Soaring Demand Drives Up Property Prices in Delhi-NCR and MMR
Average housing prices in Delhi-NCR and Mumbai Metropolitan Region (MMR) have risen by nearly 50% in the last five years, driven by higher demand and infrastructural developments.
Aditya Birla Real Estate: Pune Launch on the Cards, Expanding in Thane and Sarjapur
In a recent post-earnings call, the management of Aditya Birla Real Estate Ltd, formerly known as Century Textiles and Industries Ltd, announced the upcoming launch of a new project in Pune, along with plans to expand in Thane and Sarjapur.
ACRES 2025 Showcases Over 400 Property Projects in Egypt Pavilion
Organised by the Sharjah Chamber of Commerce and Industry (SCCI) in collaboration with the Sharjah Real Estate Registration Department (SRERD), the ACRES 2025 event is set to feature an extensive array of property projects from Egypt, highlighting the cou
The 23-Year Journey: How a UP Man Purchased Dawood Ibrahim’s Mumbai Shop
Hemant Jain took a significant risk in 2001 by purchasing a Mumbai shop linked to Dawood Ibrahim. Despite numerous bureaucratic obstacles, he finally managed to register the property after a grueling 23-year battle.
What Are the Top 20 Expectations for the Budget 2025-26?
As the Union Budget 2025-26 approaches, scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1 (Saturday), the real estate industry and other sectors are bracing for significant changes and potential boosts. Here’s a detailed look