ladies and gentlemen good day and welcome to the Q3 and 9M F525 earnings conference call of high-tech pip limited we have with us from the management MrAnish pansel hold holdtime director MrArin Kumar bansal executive director and group CFO and MrArun Sharma company secretary and compliance officer as a reminder all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes should you need assistance during the conference call please signal an operator by pressing star than zero on your Touchstone phone please note that this conference is being recorded I now have the conference over to MrAnish bansel whole time director thank you and over to you sir good afternoon ladies and gentlemen it is my pleasure to welcome welcome you all to the Q3 fi25 earnings conference call for Hightech ppes limited I'm joined today by MrArin bunel executive director and group CFO and MrArun Sharma company secretary and compliance officer I would like to extend my heartfelt gratitude to our investors and stakeholders for their continued trust and support in our company today I will walk you through the key highlights of our financial performance ongoing expansion plans and our vision for the future now coming to the financial performance in Q3 fi25 we are delighted to report another robust quarter underscoring our commitment to operation excellence and sustained growth here are the key financial highlights for the Q3 fi25 the revenue from the operations stood at 761 crores marking a 21% growth compared to 630 cres in Q3 fi2 24 profit before tax grew by 35% to 25. 6 cres up from 18. 9 crores in Q3 f524 profit after tax increased by 34% to 19.
1 crores compared to 14. 3 crores in Q3 F by 24 ABA per ton stood at 3,238 rupees compared to 3,429 in Q2 fi25 the company has invested uh materialistically uh to the amount of 303 crores towards branding activities pan India which comes to around 242 rupees per ton meanwhile we have undertaken significant branding activities across India to reinforce our Market leadership and to enhance our brand visibility a major milestone in our branding Journey has been the onboarding of Ric russan as a brand ambassador a move aimed at further string Brands appeal and Market positioning this initiative aligns with our vision to create a strong emotional and aspirational connect with our stakeholders including Distributors retailers and end consumers in addition to branding we have actively worked on expanding our distribution Network enhancing our retail presence and strengthening our engagement with Fabricators and dealers through customer needs with these measures our network of Distributors and dealers is ex expected to increase by more than 10% from current 450 to 500 by end of Current financial year our portfolio has also seen an expansion with the introduction of new skus creating to evolving Market needs on the operation front we continue to drive energy cost reduction through newer renewable energy schemes ensuring sustainability and cost efficiency further our continuous focus on De bottlenecking processes and micro incentive schemes has led to effective improvements in operational efficiencies our financial discipline remains a Cornerstone of our strategy we are maintaining close monitoring of working capital ensuring optimal utilization and liquidity management additionally our credit rating has been upgraded to A+ for long-term exposure and A1 Plus for short-term exposure reflecting the strong Financial Health and confidence in our business fundamental mentals now coming to our expansion plans uh we remain committed for strengthening our manufacturing capabilities and expanding our footprint to meet the growing demand in the steel pipe sector our boundfield expansion of sanan unit 2 Phase 2 is progressing as per schedule and is expected to be commissioned in the month of April 2025 further our new Greenfield Manufacturing facility at kraad up a stateoftheart facility for our long-term growth strategy is also expected to be commissioned in the month of April 2025 these strategic investments will significantly enhance our production capacity operational efficiency and Market reach we anticipate these projects to contribute meaningful to our Revenue growth in the coming quarters looking ahead uh we are optimistic about the future of Hightech pipes limited the ongoing infrastructure development in India presents significant growth opportunities and we are well positioned to capitalize on this momentum the recent Union budget 2025 has introduced several init initiatives that aligned with our strategic objectives these initiatives combined with our strategic expansions robust Financial framework and dedicated team position us to capitalize on emerging opportunities and deliver long-term value to our stakeholders and it will further lead to positioning of a company as leading and a branded player in the industry secondly Capac capacity expansion to achieve our vision lastly Downstream capacity addition for value added products to increase our value added product Shar now we may open the floor for questions and answers thank you thank you ladies and gentlemen we will now begin with the question and anwers session anyone wishing to ask a question may please press star in one on your Touchstone telephone if you wish to remove yourself from the question que you may press star and two participants requested to use handsets while asking a question ladies and gentlemen we will wait for a moment while the question ke assembles the first question is from the line of Sara from UB Investments please go ahead hi sir thank you for the opportunity and congratulations for reporting all on high volumes um so my question is um can you give us a broad view of your Regional sales mix between East West North and South India and which is a dominant area and uh what are the pockets wherein you want to increase your presence in uh coming next few years all right uh Thank you Sara uh so as you know we are currently we have our manufacturing facilities in north west and south so North India we are having 40% uh share and in West 40% and 20% is south and going forward our our new expansion strategies I think uh the mix will be uh you know divided in three states so almost like a 35 35 in north and uh uh West and 30% in the South all right than you sir and uh so for improvement of our eeld there can be multiple ways like introducing of DFT using Co technology and graveling lines for reducing the in consumption right so DF we are already adding um can you please talk about your capacities in cor roll and graveling lines um what are the other ways uh if any that we can improve our use yeah so currently we have three galvanizing lines and one more is coming up so we'll total we'll have four galvanizing plants uh so with this you know our share of value of products will also go up uh because of the you know quoted products where we get high you know Abit up and uh regarding DFT so one DFT uh will be coming uh in Gujarat and uh we are hopeful that you know we should complete this in uh by uh end of 526 or q1 of f27 okay okay sir so what are the other ways that we can think of to improve our ear apart from DF apart from d uh so you know uh here uh firstly you know the volumes as the volumes will gr up you know the operational leverage that will help us the you know The Branding that you know the compan is aggressively you know uh has taken this uh task and going forward I think you know this activity will really help us in higher volumes and you know higher higher validation apart from these you know the new product developments like solar talk fbes uh you know that we have uh you know undertaken and uh several other new sqs and new areas uh new applications uh the compan is you know constantly eyeing uh new new markets and new products so that will also you know give us a you know Big Boost and apart from this you know DFT lines uh you know that uh we know it's you know higher uh you know value added uh it's a much higher valueing there so that will also all in all and all these things you know you know last uh you know this in the current Financial year we know you know there was the you know the capex especially from the government side was very very minimal and once this you know the capex resumption starts I think you know uh company will be you know you know very is a very well positioned to capitalize on the demand that will come from government CICS especially when you know these all these election activities are over now and uh you know the government's focus is towards uh you know uh infrastructure creation and the consumption growth so all these things will uh you know will give us good boost uh in in the in the coming in the coming quarters corre so one last question uh what percentage of renewable energy are we using in our power cost uh and what is our R by 2028 or 2030 since we are adding lot of solar power plants so right now you know we are approximately you know out of our total energy mix our 25 27% energies coming from renewable renewable sources and we have taken a Target you know to be like know net free by 2030 so in next 5 six years you know I think you know the company will be entirely on net you know carbon footprint all right thank you so much and all the best you're welcome thank you the next question is from the line of vikas Singh from Philip cap please go ahead good afternoon sir yeah good afternoon yes so my first question towards now that we are closer to a million T capacity by next quarter basically have we finalized the product mix and the for the phase two of another million ton and if so could you give us the a little bit of insight yes sir so you know after this 1 million T you know the focus is towards Large Hollow sections uh where you know infrastructure you know comes in the place so large Hollow sections are solar Solar stock tubes and apart from this you know special sqs galvanized and ungalvanized where you know there's a nich market right now but then you know those markets you know down the line they'll be uh you know growing by you know much higher percentage so all in all going forward the focus is you know now the base capacities are there so now the focus is towards you know higher you know like higher value products larger di pipe basically what we will be targeting yes the larger diab you know the solar to solar talk tubes this is you know highly growing segment in India and there are special nich applications also now you know that have come in so the focus is entirely there and we are you know geography wise you know we are well spread so where all all these you know big infrastructure projects are coming so our establishments are already there and uh you know we are strengthening them you know slowly and steadly and uh you know once all this you know government CICS and all this resumes uh we'll be you know in a much much better position to get these requirements understood so now that steam prices have more or less settled basically so how we should look at the ABA part turn improvement from hands on H for so any guidance which you would like to give Yeah becausei so basically you know the prices have you know more or less stabilized I think you know you know after these new tariffs you know there's a new uh you know new event that has taken place very recently recently and uh we are you know we are yet to see you know what impact it will have in the in the market and especially in the indan market so if there is any additional you know if you know China does some more dumping in some places so whether it will affect India or not and also you know the Safeguard Duty which is you know which is on the cards what happens to the Safeguard Duty whether this you know comes uh now or it is defered so this event is also you know you know is awaited by the industry to to uh understand whether their prices uh will remain where they are or you know it will move in north or south Direction so a lot of lot of uh lot of uh you know changes are happening and we are keeping close watch on this so we are we hope that you know the prices do not become volatile understood sir have you seen the demand traction coming back uh uh like we would have wanted or it it still uh slow than what we have anticipated plus within new you said you would be increasing 10% reach to distribution Network so how should we look at into the volume translation way so uhi so basically you know the company is operating at its peak utilization capacity so out of you know 7 and a half lakh tons uh you know we did a 1. 25 which means 67% uh uh utilization and uh you know you know whatever the conditions are you know but we are we are sure that you know whatever products we can make we will sell in the market of course yes you know I agree with you you know the government capex has been very slow this year uh but you know this also gives us an opportunity going forward so once the government uh spending comes back uh you know especially you know the J side so I think you know like you we'll be the first uh you know among the first players to take advantage of that uh situation and uh you know coming to the second part of the question regarding distribution network uh yes we are we'll be adding another 50 dealers uh in this quarter uh which will also set base for our expanded capacity which is coming uh in q1 so you know with this uh you know I think uh our uh you know network is already there so our new expanded capacity we are hopeful that you know we'll get on to you know capacity utilization of those of those units very very uh quickly understood so just one last question on our basically volume side uh we it seems to be ending this year with almost uh the required P which we have promised however how should we look at the next year because capacities are just now coming what kind of volume growth you are expecting in f26 yes sir so this year you know we had taken a target of 5 lakh tons and I'm very confident that you know we'll be meeting and maybe you know we'll beat this uh figure and going forward you know this additional 2.
