The result in the current quarter for all pipes companies will be subdued given the fall in steel prices, late budget and rainy season.

the steel prices have corrected by 30% to 40% from the highs leading to fall in realization of pipe making companies.

Hariom which is an integrated player makes pipe out of HR coil which has better realizations as compared to Patra Pipes so, the difference between Patra pipe & HR coil prices have now Shrinked down and now the difference is of 20% to 25% which is a good thing as the market gets more mature increased traction will be seen by HR coil Pipe manufactures as compared to Patra pipe Manufacturers due to better quality and strength.

This fall in price will lead to increased stocking leading to many pipe companies like Hi-tech pipes, JTL Industries and more posting record volume but the realizations will be more or less flattish.

this, is a short to mid term i expect that by Q3 or Q4 of this year we’ll also see reversal in steel prices and value growth along with volume growth for pipe companies.

Point to highlight:

1. In 2020, APL Apollo the sector leader stopped selling products on credit and to this decision all players followed except hariom pipes today it is the only player in the industry that provides credit to it’s customers to me this was interesting also it is verified by debtor and creditor cycle.
2. The Six Monthly Balance sheet attached in result of current quarter shows increase in debtors as well as the payables have grown from 19 crores to 108 crores so what can be the possible reason behind it. (one need to think of it.)

Disclaimer: Invested in the company

Data well captured!! Who could have guessed the collapse of profitability in IDFC Bank… Profits down 70%… Federal Bank is a steady tortoise… Hopefully

I recently noted a few companies reporting getting ethanol allocation… Are these tenders filling at old rates? There was talk of ethanol prices increasing, but havent seen any announcement so far…Any inputs

Given the management is going ahead with the QIP, it knows that there are better days ahead. I just exited the counter after losing patience on the subject of debt management.