Hi-Tech Pipes reported a substantial 72% increase in net profit for the second quarter, reaching Rs 18.11 crore, boosted by cost reductions. The steel products manufacturer had posted a net profit of Rs 10.52 crore during the same period last fiscal, the company revealed on Tuesday.
Despite the profit jump, Hi-Tech Pipes’ total income for Q2 dropped to Rs 706.86 crore, down from Rs 746.72 crore in the previous fiscal. Expenses also decreased, standing at Rs 682.55 crore, compared to Rs 732.69 crore a year ago.
Ajay Kumar Bansal, Chairman and MD of Hi-Tech Pipes said that sales volume for the quarter increased by 22.5% to 1.23 lakh tonnes, supported by continuous good demand for steel tubes, structural steel products, and value-added products. On the other hand, he said revenue from operations declined 5.3% due to lower raw material prices.
Bansal also pointed to the great response to the recent Rs 500 crore QIP of the company that witnessed hectic participation by institutional investors. Hi-Tech Pipes has six integrated manufacturing facilities with combined annual capacity of 7,50,000 metric tonnes.
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Source: Moneycontrol
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