Hi-Tech Pipes Ltd

- No new debt is planned; the company is focused on reducing existing debt. - Debt levels have already been significantly reduced in FY '23, with both long-term and short-term borrowings down by over 30%. - Future funding for capacity expansion (from 7.5 lakh tons to 1 million tons) will come through internal accruals, not through debt. - The company had warrant proceeds and plans to use these along with debt reduction for capacity expansion and investments. - Final capital allocation decisions, including possible debt reduction or further expansion, are expected to be finalized by end of H1 FY '24. - Overall, the company’s strategy emphasizes internal funding for growth and deleveraging rather than new fundraising via debt or equity.

- Major capex was done in FY '23; CWIP of around INR 40-45 crores to be spent in FY '24, including maintenance capex. - Greenfield facility for large diameter pipes at Sanand, Gujarat Phase 2 (~1,70,000 tons capacity) to be commissioned by Q3 FY '24. - Hot-dipped galvanizing plant set up at Sikanderabad to meet demand for galvanized products. - Installation of cold rolling mill for backward integration at Hindupur plant, expected by end of Q2 FY '24. - Focus on brownfield expansion to increase capacity from 7.5 lakh tons to 1 million tons by mid-FY '26, fully funded through internal accruals, no new debt planned. - Company in discussions to finalize further capital allocation by end of H1 FY '24, decision on further expansions to be taken in Q3 FY '24. - MoU signed with Amplus RD Solar for 5 MW solar electricity at Sikanderabad to reduce power costs and support ESG goals.

- Hi-Tech Pipes targets a volume growth of approximately 30% for FY '24. - The company aims to increase internal sales volume to 6 lakh tons by FY '25. - Installed capacity is expected to reach 1 million tons by mid-FY '26, from 7.5 lakh tons currently. - Value-added products comprise 37% now, with a target to reach 50% by FY '25, enhancing EBITDA per ton. - Focus on expanding exports, which are expected to yield higher profitability than domestic sales. - New facilities, such as the greenfield large diameter pipe plant at Sanand (1.7 lakh tons capacity), to commission by Q3 FY '24, will drive future sales. - Continuous order inflows from major infrastructure projects, including Jal Jeevan Mission, railways, and renewable energy sectors. - Price realization targets around INR 60,000–65,000 per ton for the year, with gradual improvement in EBITDA per ton expected.

- Hi-Tech Pipes aims to aggressively increase capacity to 1 million tons by mid-FY '26, supporting volume growth. - FY '24 volume growth target is about 30%, with a focus on increasing value-added products from current ~37% to 50% by FY '25, which will enhance EBITDA per ton. - EBITDA per ton improved to INR 3,200 in Q4 FY '23, targeting INR 3,500-4,000 for FY '24, with an internal goal of INR 4,000 per ton as value-added products increase. - The company expects sequential EBITDA per ton improvement quarterly through new facilities and product mix enhancement. - Debt reduction ongoing, leading to lower interest cost from FY '24 onwards, supporting better profitability. - Export market expansion is expected, offering slightly higher EBITDA per ton than domestic sales. - Positive outlook based on strong order book, infrastructure demand, and government projects like Jal Jeevan Mission and rail infrastructure.

- The company does not disclose the exact order book as per its policy. (Page 11) - However, management mentioned they have sufficient orders on hand to keep them busy for 1 to 2 months. (Page 11) - The order funnel has scaled up from 1.2 lakh tons to 1.5 lakh tons due to exploring export opportunities. (Page 9) - There are strong orders especially from the Jal Jeevan Mission for galvanized pipes. (Page 3) - Orders largely include infrastructure, building materials, water transportation, engineering, and coated products. (Pages 9-10) - The company continues to receive strong demand from key sectors including railways, metro projects, and renewable energy. (Pages 4, 5)