In This Article:
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Sales Volume: Increased by 22.5% to 1.23 lac tons in Q2 FY25 compared to 1 lac tons in Q2 FY24.
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Revenue from Operations: Declined by 5.3% due to low steel prices.
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Profit After Tax (PAT): Increased by 72% to INR 18 crores.
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EBITDA: Rose by 57.6% to INR 42.2 crores.
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EBITDA per Ton: Increased by 28%.
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First Half FY25 Revenue: Increased by 13% to INR 1,572 crores.
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First Half FY25 PAT: Surged by 95% to INR 36 crores.
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First Half FY25 EBITDA: Increased by 77% to INR 285 crores.
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Net Working Capital Days: Reduced from 63 to 60 days.
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Debt-Equity Ratio: Improved from 0.7x to 0.49x.
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Current Ratio: Strong at 1.63x.
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Return on Capital Employed (ROCE): Improved from 11% to 15%.
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Qualified Institutional Placement (QIP): Successfully closed, raising INR 500 crores.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Hi-Tech Pipes Ltd (NSE:HITECH) reported a 22.5% increase in total sales volume, reaching 1.23 lakh tons in Q2 FY25, driven by rising demand for tubes and value-added solutions.
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The company achieved a 72% increase in profit after tax, reaching INR 18 crores, and a 57.6% rise in EBITDA to INR 42.2 crores, highlighting strong profitability despite revenue challenges.
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Hi-Tech Pipes Ltd (NSE:HITECH) successfully reduced its net working capital days from 63 to 60 and improved its debt-equity ratio from 0.7x to 0.49x, indicating better financial management.
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The company completed a successful Qualified Institutional Placement (QIP) raising INR 500 crores, showcasing strong investor confidence and providing capital for strategic initiatives.
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Hi-Tech Pipes Ltd (NSE:HITECH) is on track to double its manufacturing capacity from 1 million tons to 2 million tons, aiming to become the second-largest manufacturer of W steel tubes and pipes.
Negative Points
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Despite strong sales volume growth, Hi-Tech Pipes Ltd (NSE:HITECH) experienced a 5.3% decline in revenue from operations due to lower steel prices.
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The company faced inventory losses of INR 600 to 700 per ton, impacting overall profitability.
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There was an increase in inventory levels due to expanded capacities, which could pose a risk if demand does not meet expectations.
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Hi-Tech Pipes Ltd (NSE:HITECH) is still working on finalizing its branding and marketing budget, which could delay efforts to strengthen its brand presence.
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The company is exposed to market volatility, particularly in steel prices, which could affect future profitability if not managed effectively.