Hi-Tech Pipes stock extends bull run for 9th straight day, gains 5.5% on ₹105 crore order win

Shares of Hi-Tech Pipes, one of India’s leading steel processing companies, continued their bullish streak for the ninth consecutive trading session, climbing 5.5% in today’s intraday trade to reach a fresh all-time high of ₹192.8 per share. This surge follows the company’s announcement of securing an order worth ₹105 crore to supply ERW steel pipes.

The order was placed by key customers in the renewable energy sector, as revealed in the company’s exchange filing today. The company informed investors that these orders will be fulfilled over the next three months from its new state-of-the-art manufacturing facility located in Sanand Unit II Phase I.

The company highlighted that this new facility, equipped with cutting-edge technology and efficient production processes, is set to produce high-quality steel pipes that meet the rigorous standards of the renewable energy sector.

Commenting on the development, Mr. Ajay Kumar Bansal, Chairman, Hi-Tech Pipes Ltd," “We are thrilled to be chosen as a preferred supplier of ERW steel pipes for such a pivotal sector. Our Sanand Unit represents a major investment in both our capabilities and our commitment to sustainability. These contracts not only demonstrate the confidence our clients place in us but also highlight our role in advancing renewable energy infrastructure.”

"The steel pipes will be utilized in various applications within the renewable energy sector, including wind farms, solar installations, and other green energy projects. Hi-Tech Pipes is dedicated to providing products that not only meet but exceed industry standards, ensuring durability and performance in the most demanding environments," he added.

Plans to raise ₹600 crore

On Monday, the company announced that its board of directors has approved a proposal to raise up to ₹600 crore by issuing various types of securities. This capital could be raised through the issuance of equity shares or other equity-linked instruments, such as convertible preference shares, fully or partly convertible debentures, non-convertible debentures with warrants, or other eligible securities.

The fundraising efforts may be conducted through several methods, including private placements, Qualified Institutional Placements (QIPs), further public offerings, rights issues, or any other legally permissible avenues.

The proposal is contingent upon receiving the necessary approvals from shareholders, as well as statutory, regulatory, and other relevant authorities.

Posted robust numbers in Q1

The company posted a 35% jump in its revenue from operations, reaching ₹866.98 crore in Q1 FY25, compared to ₹642.16 crore in Q1 FY24. Its profit after tax (PAT) surged by 125% to ₹18.05 crore, up from ₹8.02 crore in the same quarter of the previous fiscal year.

Total sales volumes rose by 45% YoY, with 1,22,155 tonnes sold in Q1 FY25, compared to 84,489 tonnes in Q1 FY24. The company's EBITDA experienced a notable increase of 101%, reaching ₹42.69 crore in Q1 FY25, up from ₹21.19 crore in the corresponding quarter of the previous year.

The EBITDA per tonne improved by 31%, reaching ₹3,494 in Q1 FY25, compared to ₹2,508 in Q1 FY24.

The company attributed its strong performance in the June quarter to contributions from the recently commissioned Sanand Unit II Phase 1 plant and its focus on increasing the share of value-added products.

Looking ahead, the company anticipates that the upcoming brownfield expansion in Sanand Unit II Phase 2, along with a new greenfield manufacturing facility in Sikandrabad, Uttar Pradesh, will further enhance its production capabilities. These developments are expected to help the company meet the growing demand for its products and expand its market share.

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