Shares of Hariom Pipe Industries (HPIL) soared 12% to hit an all-time high of Rs 313 after the company completed the installation of a 15-ton electric furnace. Its commercial production will begin on Friday, November 25, 2022.

The company said this would increase the company’s MS billet production from 95,832 MTPA to 104,232 MTPA.
Shares of the steel products company surpassed the previous high of Rs 318 recorded on November 9, 2022. The company’s market price has more than doubled from its issue price of Rs 153 per share. HPIL debuted on the stock market on April 13, 2022.

In the July-September quarter (Q2FY23), companies focused on sales of ERW steel pipes and scaffolding, resulting in the highest quarterly sales of ERW steel pipes at 15,675 tonnes, accounting for 77% of the total sales revenue of Rs 127 crore.

Meanwhile, profit after tax rose 29% year-on-year to Rs 9.27 crore. Ebitda also rose 12.9% YoY to Rs 16.22 crore, while the margin improved 17 basis points to 12.77% from 12.6% in Q2FY22.

“At the beginning of the quarter, the company witnessed price volatility and increased input materials such as coal, energy, and iron ore. However, all these stabilised later in the quarter. In addition, we are also evaluating the acquisition of an operational manufacturing unit located in South India,” the company added.

HPIL is one of the most backward integrated steel pipe mills, producing sponge iron, billets, hot strip and steel pipes. Management is confident it can differentiate itself from the industry and continue delivering healthy margins. With up to 30% of its final products containing recycled steel, the company is doing its part to help the environment.