Hi-Tech Pipes Ltd

Hi-tech pipes has successfully expanded its reach in various steel product categories that are utilized in a wide range of industries, including infrastructure, real estate, automobile, agriculture, oil & gas, defence, and industrial sectors.

Dear Shareholders,

I am delighted to present our Annual Report for 2023-24, which encapsulates a year marked by resilience, noteworthy performance and sustained dedication to our valued stakeholders.

In contrast to the previous year, FY24 was characterized by a confluence of favorable industry trends and growth catalysts. These elements coalesced to propel us to unprecedented heights in sales and profitability, enabling us to record our highest ever sales and profits. Anchored by the strong foundation built through decades of steadfast operation, our growth trajectory in FY24 outpaced our CAGR growth of the past five years, strides both in terms of revenue and net income.

Consequently, we ourselves pondering on the question what underpins our optimism regarding the potential for sustainability in our business. We believe that optimism arises from the path that India is set to embark upon in the coming days. We maintain a steadfast belief that the evaluation of our company's prospects cannot be performed in isolation, but rather it is intricately interlinked to significant what transpiring in the nation.

The Indian government's pledge of over 10 lakh crore to a range of infrastructure endeavors, encapsulated in initiatives like ‘The National Infrastructure Pipeline (NIP)', ‘Viksit Bharat 2047', and ‘Gati Shakti', positions India firmly on the path to realizing a $5 trillion economy within the latter half of this decade. This strategic allocation of funds is set to bolster the nation's infrastructure framework, an undertaking aimed at delivering top-tier amenities to its population and enhancing their standard of living. Historically, such infrastructural advancements have spurred augmented investment from the private sector. The fusion of these ambitious projects has catalyzed the growth of the economy, thereby casting a favorable impact on the demand for various products across various sectors, including ours. The implementation of these initiatives is anticipated to result in a significant of India's steel consumption, reaching 250 million tons by 2030 from the current 120 million tons.

As of today, Hi-Tech Pipes has successfully expanded its reach in various steel product categories that are utilized in a wide range of industries, including infrastructure, real estate, automobile, agriculture, oil & gas, defence, and industrial sectors. Moving forward, there is an increased emphasis from the Government on enhancing infrastructure, improving connectivity nationwide, strengthening defense capabilities, and initiating more housing projects. This will contribute to India's vision of becoming a Global Manufacturing Hub. This trend is likely to benefit each product category of ours. For instance, the need for improved connectivity highlights the necessity for increased construction of bridges, railway, and metro corridors, subsequently boosting the demand for steel products and facilitating the progression of our business.

Further, India has limited capacity for high-temperature-resistant pipes needed for drilling and oil exploration. These are often imported by India's oil refineries. The Government's focus on increasing India's refining capacity and the renewed focus on oil exploration by the government to lower the country's crude oil import bill is expected to propel the demand for locally manufactured/ assembled products, which would work as an incentive for Indian steel pipe makers and in turn for Hi-Tech Pipes Limited.

Moreover, India's capabilities in producing pipes that can withstand high temperatures essential for drilling and oil exploration are currently limited, leading to a reliance on imports to meet the needs of the nation's oil concerted efforts to amplify India's refining capacity, coupled with a revitalized commitment to oil exploration aimed at reducing the country's expenditure on crude oil imports, are anticipated to surge the demand for domestically produced or assembled products. This upswing is poised to serve as a stimulus for Indian steel pipe manufacturers, thereby benefiting enterprises such as Hi-Tech Pipes Limited.

Finally, I would like to iterate that I am optimistic that the convergence of these

Bharat 2047', and ‘Gati Shakti', positions India firmly on the path to realizing a $5 trillion economy within the latter half of this decade.

Government will propel the growth of the nation and in turn ours. The one policy that is likely to have the biggest impact on our business is Gati Shakti. This policy aims to bring different ministries together for integrated planning and coordinated implementation of infrastructure connectivity projects to facilitate the last mile connectivity of infrastructure and goods. This policy is expected to inspire new tailwind in the country's infrastructure sector, especially in rural and semi-urban India.

Our offerings are primed to flourish in this burgeoning economic landscape, and as a result, I have great confidence in the exceptional growth potential of our business and product portfolio. At Hi-Tech Pipes, our manufacturing capabilities have been scaling up, mirroring the burgeoning optimism of an ascending India. In tandem with the government's macro-level infrastructural initiatives, we have recalibrated our business strategy to echo this expansive vision on a corporate level. To seize the burgeoning opportunities, we have consistently invested in the sustainable augmentation of our production capacity.

During the year, we undertook the commissioning of two new units, one being a greenfield project and the other a brownfield project, at our Makhiyav, Sanand, and Sikandrabad facility, thereby propelling our overall production capacity to 7,50,000 tonnes per annum compared to 5,80,000 tonnes per annum. The new plant in Sanand, Gujarat is expected to help us cater to the demand for torque tubes arising out of the ongoing/ upcoming solar power projects in Rajasthan, Gujarat and also enable us to grow our presence in the exports market. Additionally, we focused on increasing the proportion of our value-added products which have been yielding positive results over the last few years. We enhanced the proportion of value-added products in the overall product mix from 26% in FY23 to 31% FY24. In line with this strategy, we have the vision to increase it to more than 50% by FY26.

As I reflect on the diverse strategies implemented at Hi-Tech Pipes Limited, it is with immense pride and pleasure that I declare our FY24 performance as a milestone achievement, setting new benchmark for ourselves. We have realized an impressive revenue surge of 13.14% to 131.45 crore, surpassing the previous fiscal year's figures. Our EBITDA has also seen a robust year-over-year increment of 11.29% to 11.65 crore. This extraordinary advancement is the result of several pivotal initiatives. The expansion of our production capacities, a dedicated emphasis on research and development to cultivate a varied and value-enhanced product lineup, fortifying our domestic market presence, and nurturing our emerging international market engagements have been instrumental in driving this exceptional growth.

As we continue our journey towards a resilient future,

Hi-Tech Pipes has been a paragon of dedication to a sustainably envisioned future, undertaken with utmost responsibility. Our odyssey has been marked by an unwavering allegiance to sustainable practices, a principle that has become integral to our identity.

we strongly believe that these investments will further augment our market leadership and solidify our position as a trusted partner for our clients across industries. Additionally, we are studying opportunities to further look at growth prospects in allied areas of our businesses and also in the international markets.

Hi-Tech Pipes has been a paragon of dedication to a sustainably envisioned future, undertaken with utmost responsibility. Our odyssey has been marked by an unwavering allegiance to sustainable practices, a principle that has become integral to our identity. With a steadfast commitment to ecological prudence, we have championed initiatives that underscore the conserving energy and water, while wholeheartedly adopting technologies that are kind to the environment. This ethos, combined with our established history of excellence, positions us as the premier choice among our clientele. Our forward-thinking stance, coupled with engaging our stakeholders in meaningful dialogue, has charted a course towards a future that is not only more dynamic but also deeply rooted in environmental mindfulness.

With a loyal customer base and a favourable market landscape, we possess the confidence to propel growth while upholding our sustainability commitment. Moving forward, we will continually strive for improvement, innovation, technology investment, collaboration and embrace emerging trends to maintain our competitive edge.

By embedding the vision of ‘Gati Shakti' into our operations, we will make every effort to capitalise on this horizon of opportunities, promote HTPL as a trusted partner in the success of our clients, and create long-term value for our stakeholders. Even as the Company has been engaged in accelerated capacity expansions, its debt-equity ratio remains under control and returns from the expansions are likely to facilitate debt repayment in the next few years.

To conclude, I would like to acknowledge the dedicated efforts of all our employees, who

have been instrumental in driving the ongoing success at Hi-Tech Pipes Limited.

I extend my sincere gratitude to our valued investors for placing their trust in our Company. It is their firm support that fuels our drive to meet and exceed the expectations of all our stakeholders.

Collectively, we stand ready to chart a course of sustainable growth, guided by our core principles and shared vision. With the dedication and collaborative efforts of our entire team, we continue to thrive and create a positive impact within the industry and on the larger ecosystem.