Indian Hume Pipe Company

Indian Hume Pipe Company Shares Surge 14.2% After Securing ₹858.88 Crore Order

Indian Hume Pipe Company, a prominent player in the pipeline manufacturing sector, experienced a significant boost in its share price following the announcement of a major contract. The company secured an ₹858.88 crore order for an irrigation project in Maharashtra, which led to a 14.2% surge in its share price. This development highlights the company’s strong performance and growing market presence.

Key Details of the New Order

The company received a Letter of Intent from the Tapi Irrigation Development Corporation, Jalgaon, under the Dhule Irrigation Project Circle in Maharashtra. The order, valued at ₹858.88 crore, involves several critical tasks:

Scope of Work: Engineering, Procurement, and Construction (EPC) services, including the trial, testing, and commissioning of a gravity-piped distribution network.
Project Area: The network aims to irrigate a 26,907-hectare command area of the Jamphal Dam.
Maintenance: The project also includes operating and maintaining the entire system for five years.

Stock Market Reaction

Following the announcement, Indian Hume Pipe Company’s stock surged by 14.2%, reaching an all-time high of ₹613.70 per share in early morning trading. This spike reflects investor confidence in the company’s future prospects and the impact of the new order on its financial performance.

Financial Performance for Q1FY25

For the June-ending quarter (Q1FY25), Indian Hume Pipe Company reported robust financial results:

Total Income: ₹365.61 crore, compared to ₹349.55 crore in the same quarter of the previous year.
EBITDA: ₹259.57 crore.
Net Profit: ₹231.16 crore, showing significant growth from ₹28.51 crore in the corresponding quarter last year.

These figures underscore the company’s strong operational performance and financial health.

Business Overview

Indian Hume Pipe Company specializes in the manufacturing, laying, and joining of pipelines made from a variety of materials, including:

RCC Pipes
Steel Pipes
Prestressed Concrete Pipes
Penstock Pipes
Bar-Wrapped Steel Cylinder Pipes (BWSC)
Prestressed Concrete Cylinder Pipes (PCCP)

The company supports infrastructure development across water, irrigation, sanitation, and sewerage projects. Additionally, it undertakes turnkey water supply projects that cover the entire process from water source to distribution centers.

Real Estate Segment Gains Momentum

In a strategic move, Indian Hume Pipe Company has started monetizing its land parcels. The company has launched two phases of a residential real estate project called “Dosti Greenscape” on its land in Hadapsar, Pune, in collaboration with Dosti Realty Ltd. Key details include:

Project Size: 12 residential towers with a total saleable area of approximately 14.77 lakh sq. ft. and a RERA carpet area of about 10.54 lakh sq. ft.
Current Launches: Three towers from Phase I and two towers from Phase II, comprising 507 flats with a RERA carpet area of approximately 4.37 lakh sq. ft.
Revenue Sharing: The revenue from the project will be shared in a 38:62 ratio between Indian Hume Pipe Company and Dosti Realty Ltd.

As of July 31, 2024, 361 flats with a sale value of ₹270 crore have been booked. The company has received an advance of ₹37.77 crore as part of its share of the revenue.

Conclusion

Indian Hume Pipe Company’s recent developments reflect a strong and dynamic business strategy. The significant contract for the irrigation project and the successful launch of its real estate segment highlight the company’s robust growth trajectory and diversification efforts. With strong financial performance and strategic business moves, Indian Hume Pipe Company is well-positioned for future success.

FAQs:

1.What is the value of the new order secured by Indian Hume Pipe Company?

A. The new order is worth ₹858.88 crore.

2.Which organization issued the Letter of Intent for the new order?

A. The order was issued by the Tapi Irrigation Development Corporation, Jalgaon.

3.What does the order involve?

A. The order involves the Engineering, Procurement, and Construction (EPC) of a gravity-piped distribution network for irrigation and includes system maintenance for five years.