Hariom Pipe shares gain in weak market on bagging 60-MW deal under PM Kusum

The run-up in Hariom Pipe shares came after it bagged a deal to set up solar power generating stations under the PM Kusum scheme

Hariom Pipe Industries share price: Shares of Hyderabad-based Hariom Pipe Industries were in demand on Tuesday's session, after the company's decision to foray into the renewable energy sector.

  Hariom Pipe Industries shares were trading 1.98 per cent higher, at Rs 346.90, at around 1:25 PM. Earlier in the day, Hariom Pipe Industries' share price had gained 5.20 per cent to touch an intra-day high of Rs 357.85 during the session.

  The run-up in the shares of the company came after it announced that it has bagged a contract for setting up solar power generating stations of an aggregate capacity of 60 MW (Mega Watt) (AC - alternating current), under the Component C of the PM Kusum Scheme. 

 

  The company, in an exchange filing, said, "We are pleased to announce that Hariom Pipe Industries Limited (“HPIL”), has received a Letter of Award (LoA) for Solar Power Developer (SPD) for Solar Photovoltaic Power generating stations of an aggregate capacity of 60 MW(AC) under “Mukhyamantri Saur Krushi Vahini Yojana 2.0 – a scheme launched for implementation of feeder level Solarization under Component C of PM Kusum Scheme". 

  According to the details of the deal awarded to the company, which includes a power purchase agreement (PPA) component, the company will receive a fixed tariff of Rs 2.96 per kWh, for a period of 25 years at a subsidiy of Rs 1.05 crore per MW, the company stated in its exchange filing. Further, it said that there is an additional incentive of Rs 0.25 per kWh for the first three year, upon the timely commmissioning of the project. 

  "The fixed PPA tariff for the 60 MW (AC) Solar Power capacity is Rs. 2.96/kWh for a period of 25 years at a subsidy of Rs. 1.05 Cr/MW. There is an additional incentive of Rs. 0.25/kWh for the first three years, upon the timely commissioning of the project," it said.

  Hariom Pipe Industries December quarter results

  Hariom Pipe Industries reported a 7.1 per cent year-on-year rise in sales during the October to December 2024 quarter, at Rs 299.88 crore. The company's sales during the year-ago quarter stood at Rs 280 crore.

  The company's net profit during Q3 FY25 came in at Rs 11.23 crore, higher by 14.48 per cent from the Rs 9.81 crore in the year-ago period.

  Operating profit margin for the company during the quarter came in at 13.22 per cent, compared to 11.64 per cent in the year ago period.