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.
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