Letter from the Managing Director
Dear Stakeholders,
I hope that this Report finds you and your families safe and well.
In the ever-changing business landscape, where challenges are constant, unique
opportunities await those with the courage to seize them. At Hariom, we have always been
optimistic about India's growth story and the endless possibilities it offers. This year's
performance reflects our sustained efforts capitalising on them. As we conclude FY24, I am
delighted to share the remarkable progress we have made in achieving our strategic goals
and strengthening our market position in the steel pipe industry.
The commissioning of our state-of-the-art CR Tandem mill at the Mahabubnagar Plant has
opened new avenues for expansion. This facility enables us to meet the needs of industries
such as packaging, furniture, auto components, pre-engineering building products and many
more.
A Year of Strong Performance
We reached several milestones in FY24, culminating in our highest-ever sales volume by
year-end. This achievement resulted in an 80% revenue growth, bringing our total revenue
to Rs.1,158 crore. We also achieved our best-ever performance in terms of EBITDA which
soared to Rs.144 crore, representing a 74% YoY increase.
This performance was bolstered by higher production from an enhanced capacity, a higher
share of Value-Added Products, and improved efficiency. Our commitment to expanding our
Value-Added Products share resulted in a record high of 92% for the year, compared to 80%
in FY23. This led to a 23% YoY increase in PAT, reaching Rs.57 crore.
Strategic initiatives such as the Galvanized Pipe Project in Mahbubnagar, efficient
inventory management, and proactive measures to reduce debtor days, like channel finance
and efficient collection methods, led to an Operating Cash Flow of Rs.5 crore in FY24,
compared to a usage of Rs.100 crore in FY23. Our ROCE has surged significantly to 18.8%,
up from 14.6% in the previous year, reflecting optimal utilisation of fixed assets and
effective management of working capital.
Most importantly, we began our journey to maximise shareholder value, with our Board of
Directors recommending a final dividend of Rs.0.60 per equity share with a face value of
Rs.10 (6%) each for FY24. Looking ahead, we remain steadfast in our commitment to
providing sustainable, longterm value to our shareholders through a balanced approach that
includes both capital appreciation and dividend payments.
Poised for Growth
India's growth story remains fundamentally sound, with the Economic Survey projecting
an 8.2% increase in GDP for FY24. This, along with a predicted GDP growth of 7.2% in FY25,
indicates that India is well poised to continue its phase of expansion.
Moreover, the Indian government is helping upgrade one of the biggest drivers of
economic growth- infrastructure. The recent Budget 2024-25, which announced a capex outlay
of Rs.11+ trillion towards infrastructure, will give a significant boost to India's
overall growth and development, improving various sectors of the economy.
At Hariom, our competitive edge in our manufacturing capabilities, backward
integration, strategic geographical presence and focus on high- margin value-added
products make us well-placed to seize the opportunities that lie ahead and create value
for our stakeholders.
Looking ahead, we have developed strategic plans to tap into the potential offered by
multiple sectors, including construction, automotive, real estate, power and
infrastructure, among others.
Investing in the Future
Our growth strategy is underpinned by six strategic pillars that guide our operations
and decisionmaking processes. These pillars are designed to drive profitability, enhance
customer experience, and ensure inclusive growth for all stakeholders.
In FY24, we continued to invest in our operations to pave the way for future growth.
The commissioning of our state-of-the-art CR Tandem mill at the Mahabubnagar Plant has
opened new avenues for expansion. This facility enables us to meet the needs of industries
such as packaging, furniture, auto components, pre-engineering building products and many
more. Additionally, the new GP unit and the enhanced MS pipe unit in Telangana increased
our production capacity by 1,70,000 MT.
Accelerating Growth with Sustainability
We believe in inclusive growth that addresses the needs of employees, dealers,
customers, communities, investors, and the environment. Our employee training, community
engagement, and environmental sustainability initiatives reflect our holistic approach to
business growth.
Environmental sustainability is a core component of our operational strategy. Our pipe
unit in India is one of the country's first to be fully solar-powered, underscoring our
dedication to promoting sustainable practices. Further, we recycle 34K MT of steel scrap,
including scrap produced at our units, to promote green steel.
In FY24, we achieved significant sustainability milestones by fully transitioning our
Mahabubnagar GP Plant to solar power, reducing our emission intensity to 89.16 CO2e/ Rs.,
and consuming 9.21 TJ of energy from renewable sources, underscoring our commitment to a
greener future.
Much Done, Much More to Do
The financial year we have just closed has been strong in many ways. We have
significant tailwinds for growth and an expanded production capacity, setting the stage
for sustained growth in the future.
As we look to the future, I am confident that we have the right strategy to deliver on
our promise of growth. Our goal is to fully leverage our installed capacity by 2026,
ensuring optimal performance while upholding our dedication to profitability and
sustainability.
Our focus on innovation, market expansion, and value creation positions us well to
achieve this ambitious goal. We will continue to explore new growth opportunities, enhance
our product offerings, and invest in cutting-edge technologies to stay ahead of the curve.
75% of the new India is yet to be built. We remain dedicated to enhancing our value-
added offerings to meet the evolving needs of a rising and aspirational India. Hariom
Pipes will not only thrive but also embark on a new era of growth.
I am confident that the alignment and commitment of our shareholders, Board, and
management will help us navigate these dynamic times and deal with the ever-evolving
business landscape.
In closing, I sincerely thank our shareholders, employees, customers, and partners for
their unwavering support and trust. We will continue to build on our successes, drive
sustainable growth and create lasting value for all stakeholders.
Warm regards,
RUPESH KUMAR GUPTA
Managing Director.