The shares of a small-cap steel company that is primarily engaged in the manufacture of high-quality steel products and catering to a variety of infrastructure and industrial applications across multiple sectors gained around 9 percent in today’s trade after achieving robust growth in the sales volume for the Q4FY25.
Price Action
The shares of Hariom Pipe Industries Ltd, with a total market capitalization of Rs 1,192.24 Crore on Thursday, reached an intraday high at Rs 389.85 per share, gaining around 8.5 percent in today’s trade. The shares closed at Rs 385 per share, which was 7.15 percent higher than the previous closing of Rs 359.3.
What Happened
As per a press release dated April 2, 2025, on a quarterly basis, the company reported a significant 46 percent YoY growth in the Sale of Value-Added Products (VAP), from 49,260 MT in Q4 FY24 to 72,149 MT in Q4FY25. Their total sales volume for Q4FY25 stood at 74,213 MT, reflecting a 23 percent YoY growth. The Value-Added Products (VAP) contributed 97 percent of the total sales volume, up from 81 percent in Q4 FY24, driven by strong demand for premium products.
On a yearly basis, the company reported a strong 35 percent YoY growth in the Sale of Value-Added Products (VAP), from 1,74,666 MT in FY24 to 2,35,812 MT in FY25. Their total sales volume for Q4FY25 stood at 2,45,467 MT, reflecting a 23 percent YoY growth. The Value-Added Products (VAP) contributed 96 percent of the total sales volume, up from 88 percent in the previous year.
Management Commentary
Mr. Rupesh Kumar Gupta, Managing Director, stated that the shift toward high-value, specialized products reflects its long-term strategy of diversifying the company’s portfolio and enhancing customer value. He added that the continued focus on VAP not only boosts higher margins but also strengthens its competitive edge in the market.
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Financials
The company reported a 7.1 percent YoY growth in revenue from operations from Rs 280 Crore in Q3FY24 to Rs 300 Crore in Q3FY25. Their Net Profit also increased by 14.5 percent YoY from Rs 10 Crore to Rs 11 Crore over the same period.
Future Outlook
The company is planning to penetrate further into existing geographies, with a focus on Tier 2 and Tier 3 cities as well as the rural market. The company is also focused on enhancing capacity for value-added products (MS Tubes & GP Pipes) and also boosting sponge iron capacity. It aims to strengthen the dealer network by adding new networks in Western and Northern India and also enhancing the network in existing geographies of Southern India.
Additionally, the company is targeting 30 percent YoY Volume Growth in FY26, driven by an increase in capacity utilization, deeper penetration, and a strong dealer network.
About Hariom Pipe Industries Ltd
Hariom Pipe Industries Ltd is a leading manufacturer of iron and steel products in India. The company offers a diverse product range, including Mild Steel Billets, HR and CR Pipes, GP Pipes, and Scaffolding systems. The company, with a strong market presence in South and West India, boasts a total installed capacity of 701,232 MTPA and an extensive product portfolio with over 800 SKUs.
Written By Adhvaitha Nayani
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