Srikalahasthi Pipes

We had stated in March’15 itself and in this very column, post its excellent Q3 performance, that the company will end FY15 on a bumper note. And that it did! It ended FY15 with a net profit of Rs.83 crore, up by a smart 113% on a 10% rise in net sales at Rs.1083 crore.  And its Q4FY15 was also very good with a 22% (YoY) rise in net sales at Rs.301 crore  and net profit for the quarter was at Rs.30 crore, up 76%. Other income more than doubled but so did tax outgo, up from a write back of Rs.35 lakh to an outgo of Rs.12 crore. EBITDA was at Rs.57 crore, up 90% and margin came in at 18.94% v/s 12.14%.

The company has undertaken expansion program  of Rs.100 crore for creating balancing facilities and it is as per schedule, went on stream by March 2015. This is expected to increase company’s ductile iron pipe production by 50000MT and we can see the benefits in FY16. The company is also working on reducing costs and the effect of this and increased capacity is expected to help the company post better numbers for FY16. The company, which produces ductile iron pipes mainly used for transporting water, is currently on the lookout to form a joint venture that would use the “surplus liquid metal” which is its manufacturing residue.