Hariom Pipe Expects 50% Revenue Growth After Product Portfolio Expansion

Hariom Pipe Industries Ltd. is aiming to achieve revenue growth of 50% in FY25, according to the company’s chief financial officer Amitabh Bhattacharya.

Hariom Pipe, on Sept. 24, announced plans to raise Rs 700 crore through multiple financial instruments including a qualified institutional placement.

“When you have that much of a fund, your interest will be cut down and the growth trajectory will have a faster pace,” Bhattacharya told NDTV Profit.

The earnings per share will remain constant this fiscal year, the top executive said.

“This quarter is soft and we will give the correct figure after the quarter is completed. As of now, we are anticipating around 50% revenue growth,” he said.

Bhattacharya added that an 82% growth in the previous fiscal year was due to the expansion of capacity by two times following its initial public offering in FY23.

The company, which produces its own raw materials, has shifted its focus to value-added products, adding galvanised pipes and cold rolled pipes verticals to its portfolio.

“We are expecting around 12-13% Ebitda margins in the new vertical of the GP products,” the CFO said.

The products have improved the blended Ebitda margins for Hariom Pipes, with the company’s Ebitda per MT increasing substantially from Rs 5,726 in FY21 to Rs 8,938 in FY22 when the focus shifted to value-added products, Bhattacharya noted.

“In FY24, more than 90% of the Ebitda was contributed through these products and subsequently after the market correction also we have achieved Rs 7,200-plus blended Ebitda/MT,” Bhattacharya said.

Hariom Steel Pipes is also expecting to increase its capacity by FY26 and utilise optimum levels. “Presently our finished steel product capacity is 0.4 million tonnes, and overall gross capacity is 0.7 million tonnes. We are targeting to achieve the optimum level of utilising the capacity by FY26,” Bhattacharya said.

Shares of Hariom Pipe Industries Ltd. closed at Rs 730 apiece on Thursday, down by 1.8% from its previous close of Rs 743.40, on the BSE. The stock had touched an intraday high of Rs 746.45 per share during Thursday’s trade.