Metal stock declares 10:1 stock split, posts higher ever sales, PAT growth in Q3


With a market valuation of 1,108.26 Cr, Hi Tech Pipes Ltd. is a small-cap company that engages in the metal industry. In the Indian piping sector, Hi-Tech Pipes Limited (HTPL) is a well-known brand name. Hi-Tech Pipes, one of India’s top suppliers and manufacturers of ERW pipes, is headquartered in New Delhi. For a variety of industries, including infrastructure, telecom, defence, power distribution, railways, airports, real estate, automobiles, and agriculture, the firm manufactures a broad variety of steel tubes and pipes. The firm has announced its Q3FY23 results, which show the highest-ever rise in sales volume and net profit. The company has also announced a 10:1 stock split.

The company has said in a stock exchange filing that the Board of Directors in its meeting held today i.e. Saturday, January 28, 2023, has approved “the sub-division/split of existing equity share of the Company from one equity share having face value of Rs, 10/- (Rupees Ten only) each, fully paid-up into Ten (10) equity shares having face value of Rs. 1/- (Rupees One only) each fully paid-up, and consequent alteration in the capital clause (Clause V) of the Memorandum of Association of the Company, subject to the approval of shareholders and other competent authorities.”

Citing the rationale behind the stock split, the Board of Directors of Hi-Tech Pipes informed stock exchanges to improve the liquidity of the Company’s equity shares in the stock market and to make it more affordable for small retail investors.

On a consolidated basis, the company reported revenue from operations of Rs.569.29 Crore in Q3FY23 as compared to Rs.440.02 Crore in Q3FY22, registering a growth of 29% YoY. In Q3FY23, the firm announced its highest-ever net sales volumes, up 40% to 91,232 tonnes from 65,088 tonnes in Q3FY22. Hi Tech Pipes achieved its highest-ever net profit in the third quarter of fiscal year 23 as PAT climbed by 28% to Rs. 13.02 crore from Rs. 10.17 crore in the year-ago quarter, whereas the company’s EBITDA grew by 14% to Rs.28.58 Crore in Q3FY23 as compared to Rs.25.09 Crore in Q3FY22.

The company has also disclosed that it began commercial production of a color coating line in Sikandrabad, Uttar Pradesh, in the quarter that ended in December 2022, with an installed capacity of 50,000 MTPA.

Commenting on the performance, Mr. Ajay Kumar Bansal, Chairman and Managing Director, Hi-Tech Pipes Ltd. Said, “During this Quarter the Company has register a healthy set of numbers in terms of Revenue, Highest Sales Volume and Profitability, this is mainly due to better capacity utilization, improved sales realizations and increase of share of Value added Products. The Commercial production of our new Color Coating Line has commenced form this month we are happy that this high margin value added product will further help in strengthening the Company’s margin on blended Level in medium to long term.”

“In lines with our commitment to environment and making ourselves energy self-sufficient, I am happy to announce that now the maximum of power requirements in our Sikendrabad, U.P. plant now shall be fulfilled by the renewable resources. We as Company always committed to fulfil the requirements of the Society as well as Nature. Not only on the environmental front this development will also help us to reduce significantly the cost element in our manufacturing process,” further added Mr. Ajay Kumar Bansal.

On Friday, the shares of Hi-Tech Pipes Limited closed on the NSE at 910.60 apiece, down by 3.20% from the previous close of 940.70.

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Article Source:Money Control

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