Hi-Tech Pipes, a leading steel processing company in India, saw its stock continue its strong upward trend for the ninth straight day, jumping 5.5% today. The stock reached a new all-time high of ₹192.8 per share. This surge followed the company’s announcement that it had won a significant order worth ₹105 crore to supply ERW steel pipes.
The order was placed by major clients in the renewable energy sector, according to the company’s filing with the stock exchange. The pipes will be produced over the next three months at Hi-Tech Pipes’ new manufacturing facility in Sanand Unit II Phase I, which features advanced technology and efficient production processes.
Ajay Kumar Bansal, Chairman of Hi-Tech Pipes Ltd, expressed excitement about the order, stating, “We are honored to be chosen as a key supplier for the renewable energy sector. Our new Sanand Unit is a major investment in our capabilities and our commitment to sustainability. This order not only reflects our clients’ trust in us but also highlights our role in supporting renewable energy infrastructure.”
The steel pipes will be used in various renewable energy projects, including wind farms and solar installations. Hi-Tech Pipes is committed to producing products that exceed industry standards, ensuring durability and high performance in challenging environments.
Plans to Raise ₹600 Crore
In addition to the order win, Hi-Tech Pipes’ board of directors has approved a plan to raise up to ₹600 crore by issuing different types of securities. This could include equity shares, convertible debentures, or non-convertible debentures with warrants. The company may raise this capital through private placements, public offerings, or other legal methods, pending approval from shareholders and regulatory authorities.
Strong Q1 Performance
The company reported strong financial results for the first quarter of FY25. Revenue from operations increased by 35% to ₹866.98 crore, compared to ₹642.16 crore in the same quarter of the previous year. Profit after tax (PAT) rose by 125% to ₹18.05 crore, up from ₹8.02 crore in the previous fiscal year’s first quarter.
Sales volumes also saw significant growth, rising 45% year-over-year, with 1,22,155 tonnes sold in Q1 FY25 compared to 84,489 tonnes in Q1 FY24. The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) more than doubled, increasing by 101% to ₹42.69 crore from ₹21.19 crore in the same quarter last year. The EBITDA per tonne improved by 31%, reaching ₹3,494 in Q1 FY25 compared to ₹2,508 in Q1 FY24.
Hi-Tech Pipes credited its strong performance to the contributions from the newly opened Sanand Unit II Phase 1 plant and its focus on producing more value-added products. Looking forward, the company expects that the upcoming expansion of the Sanand Unit II Phase 2 and the construction of a new manufacturing facility in Sikandrabad, Uttar Pradesh, will further boost its production capacity and help it meet growing demand while expanding its market share.
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