Hi-Tech Pipes Expects Value Added Products To Help Meet Rs 3,700 Crore Revenue Target

Hi-Tech Pipes Ltd. expects to achieve revenue of around Rs 3,500-Rs 3,700 crore in fiscal 2025, driven by increased focus on value-added products, according to the company's Whole Time Director Anish Bansal.

The value-added products segment, which contributes 36% to the company’s topline presently, could rise up to nearly half of the total revenue in the next two to three years. Hi-Tech Pipes has a series of new units coming up with more focus on value-added products, according to Bansal. 

“The new facility (in Sanand, Gujarat) is focused on value-added products. Our current VAP share is around 35%. Going down the line, it should rise up to 50%–55% in the next two years. All the new capacities coming are focused on higher value-added products,” he said.

“We have new plants coming up and churning has started from them...The margin will also increase because the share of value-added products has increased significantly. The steel prices have also gone up and that will give us a big tailwind going forward," he said.

Hi-Tech Pipes is focused on increasing its production capacity, adding 1 million tonnes to the volume by the end of this financial year, Bansal said.

“Out of this, 70% peak utilisation is possible. So that means we will have 6.5 to 7 lakh tonnes at disposal for FY26. With an Ebitda of Rs 4,000 plus per tonne, the company is poised well for good margin expansion from the current 5% mark,” he said.

Higher valuation will also enable the company to better-discount raw materials, Bansal said. 

This Ebitda per tonne progression from the current Rs 3,500 per tonne will be achieved with a mix of volume and value growth, according to Bansal. 

Hi-Tech Pipes will spend Rs 800 crore in the next two and a half years to drive the production volumes to 2 million tonnes. The capex will be done internally and externally if required.

The company's first quarter consolidated revenue rose 35% year-on-year to Rs 866.98 crore from Rs 642.16 crore in the year-ago period.

The company's profit after tax surged over 125% to Rs 18.05 crore in the April-June quarter, up from Rs 8.03 crore in the same period last year.