The shares of leading manufacturers of steel gained up to 8 percent after the company bagged a prestigious work order from Patel Infrastructure Limited for Rs 7 crore.
Price Movement
With a market capitalization of Rs 347.01 crore, the shares of Vibhor Steel Tubes Ltd were trading at Rs 183.00 per share, increasing around 2.75 percent as compared to the previous closing price of Rs 178.10 apiece.
Reason for Rise
The shares of the company have seen positive movement after Vibhor Steel Tubes Ltd received a new work order from Patel Infrastructure Limited for the supply of Metal Crash Barriers for the Ganga Expressway Project worth Rs. 7 Crores.
Financial Performance
Looking forward to the company’s financial performance, revenue increased by 19 percent from Rs 280.17 crore in Q2FY24 to Rs 236.09 crore in Q2Y25. During the same period, net profit increased by 52 percent, from Rs 5.18 crore to Rs 0.89 crore.
Product Diversification
The company is diversifying with Power Transmission Lines, securing 650-ton orders in Hyderabad. It plans to introduce Monopole technology by mid-2025 for efficient power transmission. Additionally, Octagonal and High Mast Poles for lighting systems will launch alongside other new products.
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Market Demand
The company saw a post-election sales recovery in October, reflected in production and dispatch metrics. Steady demand growth for Steel Pipes, Black and Galvanized Pipes, and Crash Barriers is expected in Q3 and Q4 FY25, with exhibitions driving strong market response and share gains.
Margin Guidance
The company expects margin improvement as production scales and product diversification expands. Higher profitability is anticipated from Transmission and Monopole segments over traditional pipes. Management projects a 2% margin increase for new products, driven by enhanced efficiencies and a stronger product mix.
Management views
Management is optimistic about H2 FY25, expecting strong revenue growth from new product launches and improved market conditions. Expansion into new product domains and geographical markets is set to boost both top-line and bottom-line performance in the coming quarters.
Profile Summary
Vibhor Steel Tubes Limited manufactures and exports steel pipes and tubes, including Mild Steel/Carbon Steel ERW Black and Galvanized Pipes, Hallow Steel pipes, and Cold rolled Steel (CR) Strips/ Coils. The company was established in 2003 and it primarily caters to the heavy engineering sector in India.
Written by Abhishek Singh
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