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Hariom Pipe hits all-time high as production kicks off for melting furnace

Shares of Hariom Pipe Industries (HPIL) rallied 12 per cent to hit an all-time high of Rs 313 amid heavy volumes after the company completed the set up of 15 ton electric melting furnace

Buzzing stocks | Hariom Pipe Industries | stocks to watch

SI Reporter  |  Mumbai 

Photo: iStock
Photo: iStock

Shares of (HPIL) rallied 12 per cent to hit an all-time high of Rs 313 amid heavy volumes after the company completed the set up of 15 ton electric melting furnace. The commercial production for the same will commence from Friday, November 25, 2022.

This, therefore, will increase the company’s production of MS Billets from 95,832 MTPA to 104,232 MTPA, the company said.

The stock of iron & steel products company surpassed its previous high of Rs 318, which it had touched on November 9, 2022. The market price of the company has more-than-doubled from its issue price of Rs 153 per share. HPIL made a stock market debut on April 13, 2022.

During the July-September quarter (Q2FY’23) the company focused to sell ERW Steel Pipes & Scaffoldings, and thereby, achieved highest ever quarterly sales volume of 15,675 tons of ERW Steel Pipes, comprising 77 per cent of the total sales revenue of Rs 127 crore.

Profit after tax, meanwhile, grew 29 per cent year-on-year (YoY) to Rs 9.27 crore. Ebitda, too, was up 12.9 per cent YoY at Rs 16.22 crore, whereas margin improved 17 bps to 12.77 per cent from 12.6 per cent in Q2FY22.

"During the beginning of the quarter, the company witnessed volatile and elevated prices of input materials like coal, energy, iron ore etc. Though all these have stabilized later in the quarter. That apart, we are also in the process of evaluating the acquisition of an operating manufacturing unit located in South India," the company added.

The company is one of the most backward integrated steel pipe mill companies, wherein HPIL manufactures sponge iron, billets, HR strips and pipes. The management is confident to stand out from the overall industry and continue to deliver healthy margins going forward. With up to 30 per cent of the company’s end product which contains recycled steel, the company is trying its bit to contribute to a better environment.

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First Published: Fri, November 25 2022. 11:45 IST