Q1 2027 Hi-Tech Pipes Ltd Earnings Call Transcript
Key Points
- Strong volume growth of 26% YoY to 156,136 metric tons in Q1 FY27, driven by robust demand from infrastructure and construction sectors.
- Revenue surged 79% YoY to INR1,413 crores, reflecting successful ramp-up of new capacities and improved market penetration.
- EBITDA increased 20% YoY to INR49.37 crores, with EBITDA per ton improving marginally to INR3,162, despite higher energy costs.
- Expansion projects on track: DFT facility expected operational by Q3 FY27, API Pipes facility by Q4 FY27, and Hindupur plant by Q4 FY27, supporting the 2 million tonne capacity target by FY29.
- Emerging demand from data centers for large hollow sections, with initial volume guidance of 15,000-20,000 tons for FY27, offering a new growth avenue.
- Export business gaining traction with repeat orders, targeting 10% of total revenue from international markets in 2-3 years, focusing on Europe, America, Canada, and Australia.
- Profit after tax remained flat at INR20 crores in Q1 FY27, despite significant revenue growth, indicating margin pressure.
- Elevated gas prices, which more than doubled, and higher logistics and ocean freight costs are impacting EBITDA per ton.
- EBITDA per ton is currently below the target of INR4,000, as the company offers special rebates to dealers to penetrate new markets, delaying margin improvement.
- Finance costs are elevated due to simultaneous commissioning of three new plants, leading to higher working capital requirements and debt levels.
- Geopolitical tensions (Iran war) and monsoon season are expected to keep Q2 volumes similar to Q1, with stronger growth only in H2 FY27.
- The company had to dispose of an import consignment due to geopolitical issues, leading to a reduction in stock-in-trade and potential one-time losses.
Ladies and gentlemen, good day and welcome to the Hi-Tech Pipes Limited Q1 FY27 Earnings Conference Call.
(Operator Instructions)
Please note that this conference is being recorded.
I will now hand the conference over to Mr. Anish Bansal, full-time director from Hi-Tech Pipes Limited. Thank you, and over to you, sir.
Good morning, ladies and gentlemen. On behalf of the board of directors, I extend a warm welcome to all of you to the earnings conference call of the company for the first quarter of FY27. Iâm joined today by Mr. Arvind Bansal, Executive Director and Group CFO. Iâm pleased to share that despite the challenges arising from Iran war, the company has started FY27 on a strong note with healthy growth in volumes, revenue, and EBITDA. The performance during the quarter reflects sustained demand across key end-user industries, successful ramp-up of our recently added capacities, and continued focus on operational efficiency.Coming to our operational performance, the company
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