Hi-Tech Pipes Limited has reported a 21% growth in its revenue from operations for the second quarter of the fiscal year 2022 (QY FY22) to INR 461 crores, as compared to INR 382 crores in the same quarter of the previous fiscal year.

The Indian steel processing company said that the increased revenue in the quarter ended 30 September 2021 was driven by increased sales volume and improved sales realization.

Hi-Tech Pipes Limited said that its EBITDA saw an increase of 27% to INR 24.23 crores, compared to INR 19.14 crores in Q1FY21. The steel processor said that the increase was steered by an improvement in operating margins.

The EBITDA/ton for Q2FY22 was INR 3,742, an increase of 68% compared to INR 2,224 in Q2FY21. Hi-Tech Pipes Limited attributed the growth to better sales realizations, increased sale of value added products on a year-over-year (YoY) basis as well as inventory gain driven by an increase in raw material prices.

Hi-Tech Pipes Limited said that its revenue from operations for H1 FY21 increased 58% to INR 844 crores, compared to INR 533 crores in H1 FY21. This was due to increased sales volume and better sales realization, said the Indian steel processing company.

Total sales volumes of the company grew by 4% to 1.26 lakh tonnes, compared to 1.21 lakh tonnes in H1 FY21 because of improved demand for steel tubes as well as structural steel products.

During the reported quarter, Hi-Tech Pipes Limited had started commercial production of a continuous galvanizing line and galvanized corrugated roofing sheets at a new facility set up with an investment of around INR 15 crores.

Ajay Kumar Bansal — Managing Director of Hi-Tech Pipes Limited said: “We feel so elated with the commencement of commercial production of Continuous Galvanizing Line and Galvanized Corrugated Roofing Sheets. Launch of Hi-Tech – Galvanised Corrugated Roofing Sheets will further expanding our portfolio of value-added products. In the recent quarter Q2FY22, our share of value-added products improved to 23% as compared to 15% during Q2FY21.

“We remain committed to further increase this share to 25-30% by FY23E. Our superior distribution network across the country ensures excellent reach and regular supply of these products.

“The demand for premium structural steel products has been very strong. Our focus remains on improving our product mix through addition of superior products like these, improving operational efficiencies, increasing capacity utilisations of our plants and sales volumes.”

  Ajay Kumar Bansal, Hi-Tech Pipes Limited, India, Steel industry news