Hi-Tech Pipes Ltd

Meeting Details

• Date: August 13, 2026; time not disclosed.
• Event: Hi-Tech Pipes Limited Q1 FY27 Earnings Conference Call.
• Type: group earnings conference call; mode: teleconference (virtual).
• Recording: conference is being recorded.

Participants

• Key company participants: Whole-Time Director; Executive Director and Group CFO.

Purpose

• Purpose: discuss Q1 FY27 earnings and outlook; investor interaction.

Utilisation status and deviation

• Fund raising mode: QIP.
• Date of raising funds: disclosed in filing.
• Amount raised: disclosed in filing.
• Quarter for report: period ended in 2026.
• Monitoring agency: ratings agency.
• Deviation: none observed in use of funds.
• Shareholder approval: not required due to no deviation.
• Audit Committee: no comments.
• Auditors: no comments.
• Status: utilisation aligned with plan.
• Purpose: confirmation of deviation/variation; none observed.

Issue overview

• Type of issue: QIP; Equity shares.
• Issue size Rs 5,007.89 million; net proceeds revised from Rs 4,718.60 to Rs 4,732.89 million.
• Main objectives: capex expansion at Sanand and Sri City; debt repayment; general corporate purposes.

Utilisation of proceeds

• No deviations observed for the quarter; utilisation aligned with disclosures.
• Object 1: 960 million utilised; 440 million unutilised; delay due to site readiness and procurement lead times.
• Object 2: 2,500 million utilised in full; no unutilised funds.
• Object 3 (GCP): 832.89 million utilised; within 25% cap of gross proceeds.

Unutilised funds and investments

• Total unutilised funds: 440 million; parked in fixed deposits across multiple banks.
• 100 million fixed deposits with SVC Bank approved by Board; no liens on unutilised funds.

Governance and compliance

• No information indicating missing statutory/government approvals; no major deviations observed.
• Past deviation in Dec 2025: unutilised proceeds invested in an equity mutual fund; later disclosed.
• All approvals or material actions not detailed; MA notes none for this quarter.

General Corporate Purpose (GCP)

• GCP allocation: 832.89 million utilised; detailed sub-heads not disclosed in MA.
• GCP usage remains within 25% of gross proceeds; board approval for allocation not explicitly reported.

Transaction details

• Target: Hi-Tech Pipes Limited; listed on NSE.
• Acquirers: Vipul Bansal; AKS Buildcon Pvt. Ltd.; Hi-Tech Agrovision Pvt. Ltd.
• PACs: Saurabh Goyal & Sons HUF; Gaurav Goyal HUF; Govind Aggarwal; Govind Aggarwal HUF.
• Other PACs: Alka Goel; Mannan Goel; Naresh Aggarwal.
• Other PACs: Mukesh Mittal; Renu Mittal; Krishan Mittal HUF; Naresh Kumar HUF; Mrinaal Mittal.
• Acquirer is part of promoter group: Yes.
• Listing exchange: NSE (National Stock Exchange of India Ltd).
• Pre-acquisition: Vipul Bansal 13,255,590 votes (6.53%); AKS Buildcon 8,520,000 (4.19%); Hi-Tech Agrovision 8,160,000 (4.02%).
• Promoter group + PACs: 58,279,513 votes (28.69%).
• Encumbrances pre-acquisition: Vipul Bansal 1,000,000; Promoter group 10,468,286.
• Total pre-acquisition voting shares: 88,215,103 (43.43%).
• Acquisition: 9,000,000 warrants via preferential allotment.
• Date: 07-08-2026.
• Mode: Preferential Allotment of Warrants.
• Equity shares before: 20,31,07,734; after: 21,21,07,734.
• Total voting shares post-acquisition: 88,215,103 (41.59%).
• Warrants held post-acquisition: 9,000,000 (4.23%).
• Salient features: Warrants; conversion details not disclosed.

Business Overview

• Core business: ERW steel pipes, hollow sections, and related products.
• Manufacturing footprint across Sikandrabad, Hindupur, Sanand, Kathua, Khopoli, Jammu.
• Capex roadmap targets 2 million tonnes installed capacity by FY29.
• API-grade oil and gas pipes to be built; readiness by Q3 FY27.
• Value-added products focus for infrastructure, water, and energy sectors.

Operational Highlights

• Commercial production commenced at Sikandrabad Unit-III.
• Reached 1 million tonnes installed capacity milestone.
• API facility readiness targeted by Q3 FY27.
• DFT facility at Sanand Unit-2 Phase-3 to be operational by Q3 FY27.
• Hindupur expansion to be fully integrated by Q4 FY27.
• Nation-building contributions: Kavach anti-collision system and BSF border fencing pipes.
• New products: Fire-Fighting pipes and ZAM self-healing coating.

Financial Performance

• Revenue rose 79% YoY to Rs 1,413 crore.
• Volume up 26% YoY to 1,56,136 MT.
• EBITDA Rs 49.37 crore; margin 3%.
• PAT Rs 20.04 crore; YoY decline 4%.
• EPS Rs 0.99; basic.
• Interest expense Rs 15.67 crore; depreciation Rs 7.79 crore.
• EBITDA per MT Rs 3,162; marginal improvement.

Capacity & Expansions

• Sanand Unit-II Phase II adds 100,000 MTPA.
• Kathua facility commissioned with 80,000 MTPA.
• Sikandrabad Unit-III adds 120,000 MTPA.
• Roadmap to reach 2 million tonnes by FY29.
• DFT facility at Sanand Unit-2 Phase-3 by Q3 FY27.
• Hindupur expansion to be operational by Q4 FY27.

Strategic Outlook

• Growth driven by infrastructure, water and energy sectors.
• Expansion to enhance product mix, supply proximity, and export potential.

Risks

• Risks include earnings volatility, project time and cost overruns, and regulatory changes.
• Mitigation focus on scaling capacity and diversified product mix.

Governance & Leadership

• Chairman & MD: Ajay Kumar Bansal; lead independent/executive directors disclosed.
• QIP raised Rs 5000 million in 2023-25.
• Executive Director & Group CFO: Arvind Bansal; CS: Arun Kumar.

Financial highlights

• Revenue rose 79% YoY to Rs 1,413 crore in Q1FY27.
• Sales volume reached 1,56,136 MT, up 26% YoY.
• EBITDA rose 20% YoY to Rs 49.37 crore.
• PAT stood at Rs 20.04 crore, vs Rs 20.92 crore prior year.
• EBITDA per tonne improved to Rs 3,162 from Rs 3,148.

Operational expansion

• New capacities are ramping up; company aims to add another 1 million tonnes.
• Consolidated capacity stands at 10.5 lakh MTPA; target 2 million MTPA by FY29.
• Eight facilities across Sikandrabad, Sanand, Hindupur, Khopoli, Kathua.

Outlook and commentary

• Management remains optimistic about structural growth opportunities in steel pipes.
• Growth expected to be sustainable and profitable, driven by capacity expansion and efficiency.

Financial approvals

• Board approved unaudited results for quarter ended 30 June 2026 in Aug 12, 2026 meeting.

Consolidated results highlights

• Consolidated net revenue from operations: 141,280.12 Lacs; PAT: 2,003.80 Lacs; EPS: 0.99.

Standalone results highlights

• Standalone net revenue: 111,227.21 Lacs; PAT: 1,516.09 Lacs; EPS: 0.75.

Auditors and regulatory notes

• Statutory auditors AN Garg & Company issued unmodified reviews on results.
• Ind AS 108 indicates a single reportable segment: Manufacturing of steel pipes and CR products.

Disclosures and availability

• Results available on company website and stock exchange portals.

Meeting Details

• Date and time: Thursday, 13 Aug 2026 at 11:30 am IST.
• Type and mode: Earnings conference call (virtual).
• Event/organiser: Q1FY27 Earnings Conference Call by Hi-Tech Pipes Ltd.
• Purpose: Discuss unaudited financial results for Q1FY27 with interactive Q&A.

Participants

• Whole Time Director present.
• Executive Director & Group CFO participating.
• CS & Compliance Officer representing governance.