Hi-Tech Pipes – Emerging Player in Steel Tubes Space

Emerging Player in high-growth Steel Tubes Space

1. Expanding capacity = 580K MTPA going to 1M MTPA by 2026. Plans in Sikandarabad 255K, Sanand 125K, Hindupur – 120K, Khopoli – 80K. SALES VOLUME increased by 21% Y-O-Y to 84,500 MT in Q1 FY24 vs. 70,000 MT in Q1FY23. Targeting the volume growth of almost 30%
   a. By end of this financial year, the company’s installed capacity will stand at 7.5 lakh tons. And we are eyeing 1 million tons in the next 1.5 years from FY ’24. So you can say mid of FY ’26, we will have 1 million tons.

2. Revenue Mix = 65% from Steel Tubes and 33% from Flat Steel & Coated Products
   a. Increasing value added share = from >30% to 50% – Sales of the coated product (GP Coil, GC Sheets, Color Coated Coils, Color Profile Sheets) is picking up well. As on Q3 FY ’23, our EBITDA per ton was in the range of INR3,000 per ton. And in Q4, it has risen to INR3,200 per ton. And with the addition of this colour coating line facility and the larger diameter pipe and other special SKUs and also the increase of galvanized products in the total basket, so this is further poised to grow from here. Our internal target is to take it up to INR4,000 per ton level, and we are working in that direction

3. New Products = Entry into Large Dia segment upto 16 inches round pipes for Water, Infrastructure, Oil & Gas Segment. With addition of this facility, Company shall be able to enlarge its product basket from ½ to 16 inches. We are expecting to start the commercial production from Q3FY24 onwards

4. Consistent Performance

   

5. Reducing WC Days

   

6. Backward integration = installation of cold rolling mill for backward integration at Hindupur plant. Hopeful to get it commissioned by the end of Q2 FY ’24