The steel industry is bouncing back with falling input costs and firm demand in the domestic market in the backdrop of rise in economic activities. Tapping the rising market demand, leading pipe manufacturer and supplier Hi-Tech Pipes announced that it has posted a whopping 80 per cent jump in its consolidated net profit on YoY basis in the first quarter of the current financial year.
According to an exchange filing, the quarterly net profit came stood at Rs 8.02 crore. It had posted a net profit on consolidated basis at Rs 4.48 crore, according to an exchange filing by the company.
Its net sales in the first quarter of financial year 2022-23 jumped 24 per cent to Rs 642 crore from Rs 516 crore in the corresponding quarter of the previous financial year.
With rise in industrial activities, the company in a statement on BSE said that the sales of coated products are picking up and contributing to the overall revenue. Ajay Kumar Bansal, chairman and MD, said that the volume growth of 21 per cent has majorly contributed by increased sales volume. The greenfield facility in Gujarat's Sanand is on the verge of commissioning.
"This will further improve the margins and strengthen the reach into different territories," he said, adding that price trend of steel has reversed, thus aiding the demand and promising opportunities for growth.
At the Uttar Pradesh Global Investors Summit (UPGIS) held in February, the firm had signed an agreement with the Yogi Adityanath government to set up a steel manufacturing facility in the state at an investment of Rs 510 crore.
Earlier in March this year, the company had sub-divided its equity shares from Rs 10 face value to Re 1, meaning each share was split into 10 shares.
Shares of Hi-Tech Pipes have delivered a whopping 48 per cent return in the last one year. On Friday, the stock settled at Rs 76 apiece on NSE.