Shares of Hi-Tech Pipes rose in Monday’s trade after the company offered a strong business outlook for FY26, supported by a strong guidance on sales volumes and operating margins.
In its post-earnings call, the steel pipe maker said it is targeting net sales volumes of over 6 lakh tonnes in FY26, compared to 4.85 lakh tonnes achieved in the recently concluded financial year. The company also expects EBITDA to range between Rs 3,500 and Rs 4,000 per tonne for the full year.
"The 1-million-tonne capacity expansion is expected to come up in the first half of FY26," the company said during the conference call.
Anish Bansal, Whole-Time Director at Hi-Tech Pipes, said "The value-added share right now, we have closed this year at 38% And with the new facilities and the recently installed galvanizing facility inHindupur, we should be around 42% -43% by end of FY26."
The upbeat commentary comes on the back of a robust March quarter performance. The company posted a 59 percent jump in consolidated net profit to Rs 18 crore, compared to Rs 1.12 crore in the same quarter last year. Total income rose to Rs 733.75 crore from Rs 680.75 crore in the year-ago period.
For the full financial year ended March 2024, net profit surged 66 percent to Rs 72.95 crore, against Rs 43.93 crore in FY23. Annual revenues grew 14 percent to Rs 3,068 crore, backed by record volumes.
(PTI Inputs)
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