Hi Tech Pipe-Recent Expansion and Operating Leverage to Drive Earnings

Hi-Tech Pipes Limited reported mixed results for Q2FY25:

• Sales Performance:

• Revenue declined 5% year-over-year (YoY) and 19% quarter-over-quarter (QoQ) to Rs 7 billion
• Sales volume reached a record high of 123,000 tonnes, up 23% YoY and 1% QoQ
• Blended realizations fell 23% YoY and 19% QoQ to Rs 57,378/tonne, primarily due to lower HRC prices

• Profitability:

• EBITDA increasing 58% YoY

• EBITDA per tonne was Rs 3,429, up 29% YoY

• Adjusted profit after tax (PAT) grew 72% YoY

• Strong volume growth offset by lower realizations

• Operational efficiency gains helped maintain EBITDA margins despite falling HRC prices

• Company demonstrated resilience in managing inventory losses - Can fellow VP members shed light on how Hi-Tech pipes managed lower inventory losses than APL APollo?