Hi-Tech Pipes Ltd., one of the leading steel tubes and pipes manufacturers in India, proudly announces that it has been assigned with aIND A credit rating for long term bank facilities and IND A1 for the short term bank facilities, for the existing exposure pertaining to SVC Bank by India Ratings and Research Pvt. Ltd.The rationale behind the rating action was stated as follows. Strong Revenue and Volume Growth in FY24: Hi-Tech Pipes consolidated revenue grew 13% YoY to INR 26,993 million in FY24 (FY23: INR 23,858 million), led by 21% increase in its net sales volume to 3,91,087 metric tonnes (MT; 3,54,000MT). In 1QFY25, the company reported sales volume increased 45% YoY or 13% QoQ to 1,22,155 MT (4QFY24: 1,07,721MT; 1QFY24: 84,429 MT), Diversified Product Portfolio: The company operates through four primary segments: steel tubes and pipes, galvanised and corrugated sheets, cold-rolled products, and colourcoated sheets, catering to various sectors. The company’s customer concentration risk is low with top 10 customers forming 24% of the consolidated revenue in FY24. is geographically diversified and has over 500 dealer-distributor network across India. The company has six plants across four states. Improvement in Credit Profile: India Ratings expects an improvement in Hi-Tech Pipes financial risk profile over the medium term, driven by a likely improvement in the cash flow from operations, and debt prepayments made by the company 1HFY25.
Commenting on the occasion, Mr. Ajay Kumar Bansal, Chairman, Hi-Tech Pipes Ltd, said We view this rating as an upgradation of our existing credit rating from CRISIL ratings. The enhanced rating strengthens our financial position and provides us with increased flexibility to support our ongoing margin expansion initiatives. We are committed to maintaining our focus on delivering superior financial performance and maintaining high standards of corporate governance while managing risks effectively.