Hariom Pipe Industries Limited — PPTs, 10-05-2025: Investor Presentation

1. Financial Highlights:

Hariom Pipe Industries reported a record revenue of ₹1,357 Cr in FY25, an 18% increase YoY, driven by a 23% volume rise to 2.45 lakh MT despite a 5% dip in average selling price. EBITDA grew 27% to ₹175.43 Cr, with margins improving by 91 bps to 12.93%. PAT rose 9% to ₹61.73 Cr despite higher depreciation and finance costs. Operating cash flow jumped 15x to ₹78.63 Cr, reflecting strong cash conversion. Net worth improved 23% to ₹573 Cr, with net debt/EBITDA easing to 1.99x and debt-to-equity stable at 0.70x. Value-added products formed 97% of revenue, highlighting product mix strength.

2. Strategic Initiatives & Growth Drivers:

Targeting a 30% volume CAGR over two years, Hariom plans capacity expansion in value-added segments like MS tubes and galvanized pipes. It is focusing on deeper penetration in Tier 2/3 and rural markets, expanding dealer networks in Western and Northern India to complement Southern dominance. Operational efficiency drives include sustainable energy adoption through solar and bio-gas. The company is boosting B2B sales (currently ~15%) and exploring franchise models to widen distribution.

3. Business Developments:

Hariom acquired 180,000 MTPA capacity assets in Tamil Nadu to diversify into galvanized pipes and coils. It formed a wholly-owned subsidiary for solar projects after securing a 60 MW solar power plant contract. The product portfolio expanded with 10+ new value-added products, alongside increased pipe mill capacities across plants to enhance scale and mix.

4. Market Position & Competitive Advantage:

The company’s fully vertical hot charging manufacturing process delivers margin and cost advantages. Its advanced facilities in Southern India and over 800 SKUs provide broad market coverage. Technology innovations include tandem mills for ultra-thin pipes (<0.4 mm) and customized lengths. A dealer network exceeding 900 partners ensures strong distribution reach. Sustainability efforts in green steel bolster brand differentiation in a competitive market.

5. Investor Implications:

Robust volume growth, enhanced value-added mix, operational efficiencies, and sustainability focus underpin positive growth potential. Financial strength is evident from improving leverage and cash flows. Expansion into new regions and segments offers market share upside, while execution on capacity utilization and dealer expansion will be key to monitor. Overall, Hariom appears well positioned to benefit from rising steel pipe demand linked to India’s infrastructure and industrial growth.