Srikalahasthi 'Pipes' good numbers

Srikalahasthi Pipes has posted an excellent set of numbers for Q4FY16 and FY16. Lower base effect, lower costs and overall better efficiencies helped.

The company posted a 5% (YoY) rise in net sales at Rs.315 crore. In terms of costs, raw material costs were down 28%, depreciation was down 36% but employee costs rose 100%. Thus over fall in total costs was at 1%. EBITDA for the quarter was up 21.5% at Rs.69 crore and margins jumped up from 18.8% to 21.9%.

The company ended the quarter with a net profit at Rs.46 crore, up 53% and it ended FY16 with a whopping 94% jump at Rs.159 crore.

QoQ, borrowings have increased 6% to Rs.401 crore but interest outgo is down 42% at Rs.7 crore. Its cash balance has come down 64% to Rs.21 crore.

Its Rs.100 crore expansion project for DI plant is scheduled to be completed by end of Sept 2016 and that will increase its pipe making capacity from 2.25 lakh MTPA to 3 lakh MTPA.

The stock price is up in the green today morning, intra day rising oer 6% to Rs.285 levels. Its 52-week high stands at Rs.349.