Hi-Tech Pipes shares rise 5% after Q3 results, stock-split announcement

Hi-Tech Pipes' shares jumped about 5 per cent during the early trade on Monday after strong performance in the December 2022 quarter. The stock was also at the focus of traders amid the choppy session following the announcement of stock split.

Hi-Tech Pipes reported a 28 per cent rise in the net profit at Rs 13.02 crore in the quarter ended on December 31, 2022, which was Rs 10.17 crore in the year ago period. On a sequential basis, the net profit zoomed over 200 per cent from Rs 4.34 crore in quarter ended on September 30, 2022.

Hi-Tech Pipes' board also announced the sub-division or split of its equity shares in 1:10 ratio along with the quarterly performance. It means that each equity shares of the company having a face value of Rs 10 will be divided into ten equity shares with a face value of Re 1 each. The company will announce the record date later, said the exchange filing.

Hi-Tech Pipes' shares gained 5 per cent to Rs 944.60 on Monday, following the announcements. However, the stock was trading at Rs 933.75 at 11.25 am. The scrip had settled at Rs 903.15 on Friday.

Shares of Hi-Tech Pipes have delivered multiabgger returns in last seven months. The stock has jumped 190 per cent from its 52-week low of Rs 323 on June 23, 2022. The stock tested record high of Rs 995 in the last week. The stock has gained 15 per cent in the last one month.

Hi-Tech Pipes also clocked a 29 per cent increase in the revenue from operations at Rs 569.29 crore in Q3FY23, which was Rs 440.12 crore in Q3FY22. The company's revenue from operations dropped about 5 per cent from Rs 598.53 crore in Q2FY23.

Hi-Tech Pipes also reported a 40 per cent rise in the total sales at 91,232 tonnes in the third quarter of the ongoing fiscal, compared to a total sales of 65,088 tonnes in the same period previous fiscal. However, its EBIDTA per tonnes dropped 20 per cent to Rs 3,076 in Q3FY23 from Rs 3,853 in Q3FY22.

The company said that it is considering the stock split to improve the liquidity of the Company's equity shares in the stock market and to make it more affordable for small retail investors. The corporate action will be completed within the two months form the date of approval from the board of directors.
 

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