Hi-Tech Pipes Saw A 3% Intraday Surge As The Trustee Purchased 46,000 Shares

An advanced steel processing enterprise in India, Hi-Tech Pipes Limited, experienced an increase of over three per cent in its share price during the trading session on February 25. This increase was catalyzed by the notification from Hi-Tech Pipes Employees Welfare Trust which noted that its trustee Manoj Kumar Gupta bought 46,000 shares of the company in free market purchases within the month of February.

The first round of share purchases was done on February 17, when 20,000 shares were purchased. Following this, on February 20 and 21 an additional 26,000 shares were purchased. This activity resulted in an increase in Kumar's holding from 0.08 to 0.10 per cent, or 197,500 shares. This piece of information caused the stock price to surge, resulting in the stock reaching a peak of ₹114 in the middle of the trading session on BSE.

Hi-Tech Pipes has recently gained a lot of institutional interest and was reported to have FIIs increasing their holding to 34,94,557. They purchased the stock from DIIs who increased their holdings on the stock from 1,74,62,311 shares to 17.32 percent following the previously noted month of September.
This was accompanied by other domestic institutions, which increased their ownership of the stock to 9.79 percent as of December 2024.

This trend of purchasing the stock made an indication of the confidence of the institutional investors in the growth potential of the company, which was strengthened by the purchase of shares by insiders.

One of the top producers in the Indian steel piping sector, Hi-Tech Pipes Limited recently released its financial results for the quarter and nine months that ended on December 31, 2024. The demand for steel tubes and structural steel products drove a 26% rise in total sales volumes to 1.24 lakh tonnes in Q3FY25 compared to 0.98 lakh tonnes in Q3FY24. Compared to Q3FY24, when it was Rs. 630.09 Crore, the company's revenue from operations climbed by 20.78% to Rs. 761.02 Crore in the quarter under review. In Q3FY25, Hi-Tech Pipes reported a net profit of Rs. 19.15 Crore, up 33.65% from Rs. 14.33 Crore in the same quarter of the previous fiscal year.

EBITDA rose from Rs. 31.57 Crore in Q3FY24 to Rs. 40.23 Crore in the third quarter of the current fiscal, a 27.42% growth. Due to higher sales volume, the company's operating revenue improved 15.64% to Rs. 2,333.89 Crores in 9MFY25 from Rs. 2,018.27 Crores in 9MFY24. In 9MFY25, net profit climbed by 68.61% to Rs. 55.31 Crore, up from Rs. 32.81 Crore in 9MFY24. While EBITDA grew by 57.32% to Rs. 125.10 Crore in 9MFY25 from Rs. 79.52 Crore in 9MFY24, total sales volumes increased by 30% to 3.69 Lakh tonnes from 2.83 Lakh tonnes in 9MFY24.

Mr. Ajay Kumar Bansal, Chairman and Managing Director, Hi-Tech Pipes Ltd. Said," We are pleased to report another strong quarter, reflecting our commitment to growth, operational efficiency, and financial prudence. Our 21% revenue growth and 34% rise in PAT underscore our market leadership and execution excellence. The on-boarding of Hrithik Roshan as our brand ambassador, along with strategic branding initiatives, further enhances our brand visibility. Our A+ credit rating upgrade and disciplined fund utilization highlight our financial strength."

"With infrastructure growth in India and supportive government policies, we are well-positioned for future expansion. Hi-Tech Pipes remains committed to innovation, sustainability, and value creation for all stakeholders," he further added.

One of the top steel processing companies in India Hi-Tech Pipes has been producing high-quality, innovative products for almost 40 years. It is well-known for its steel pipes, hollow sections, tubes, cold rolled coils and strips, road crash barriers, solar mounting structures, GP/GC Sheets, Colour Coated Coils, and other galvanised products. The company runs six production facilities with an aggregate installed capacity of 7,50,000 MTPA at Sikandrabad (UP), Sanand (Gujarat), Hindupur (AP) and Khopoli (Maharashtra). The company operates more than 450 dealers and distributors throughout India, with physical presence in more than 20 states.

Following the release of the company's Q3 results, Hi-Tech Pipes' shares on the NSE closed Wednesday 2.60% down at Rs 116.10 per share, with a market valuation of Rs 2.36KCr.