Shares of Vibhor Steel Tubes surged 12 percent on December 6 after the company announced that its Unit III plant in Sundargarh, Odisha, is now fully ready for operations. The company expects the unit to commence operations by the end of January 2025.
At 1:50 PM, the stock was trading 9 percent higher at Rs 247. Despite this rally, Vibhor Steel has faced a challenging year, with its share price declining by 45 percent year-to-date, significantly underperforming the Nifty 50, which gained nearly 14 percent during the same period. After losing marginally in October and dropping 12 percent in November, the stock has rebounded with a 10 percent gain so far in December.
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In an exchange filing, the company said that unforeseen delays in securing the electricity connection from contractors and the Odisha Industrial Infrastructure Development Corporation (IDCO) had postponed the plant's operational timeline from its earlier target of November 2024. Vibhor Steel said that all other construction and setup activities have been completed, and it is coordinating closely with authorities to expedite the electricity connection process.
Incorporated in 2003, Vibhor Steel specialises in manufacturing, exporting, and distributing steel pipes and tubes. Its products, including ERW black pipes, galvanized pipes, hollow sections, and primer-painted pipes, cater to the construction, domestic, agricultural, and industrial sectors. The company operates two manufacturing facilities—one in Sukheli, Maharashtra, with an installed capacity of 1.25 lakh MTPA, and another in Mehboob Nagar, Telangana, with an installed capacity of 96,000 MTPA.
In Q2FY25, Vibhor Steel reported an 82.8 percent drop in net profit to Rs 89 lakh, compared to Rs 518 lakh in the year-ago quarter. Revenue also fell by 15.7 percent to Rs 236.09 crore from Rs 280.17 crore in the corresponding period last year.
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