Srikalahasthi Pipes

The company recorded a poor show for Q4FY17. It posted a 35% (YoY) rise in total income at Rs.444 crore but net profit for the quarter still slipped over 31% at Rs.31 crore. This slip in the bottomline was on account of a 64% rise in raw material costs, mainly on account of increasing coking coal prices. Total expenses rose by a huge 48%.

EBITDA was thus affected, down 22% at Rs.53 crore and margins slipped from 20.67% to 11.94%.

The company ended FY17 with a net profit at Rs.140 crore, down 10%. Equity is at Rs.39.76 crore and EPS is at Rs.35.25 (FV of Rs.10). The company’s interest outgo for the fiscal is down from Rs.42 crore to Rs.39 crore. Borrowing stands at Rs.451 crore. The company is likely to become debt-free during the first quarter of the current fiscal.

The company is raising of funds up to Rs.250 crore through qualified institutional placement. The funds are to be used for expansion of coke oven plant and increasing the capacity of its captive power plant at a cost Rs.65 crore. Rs.150 crore will be used to repay external commercial borrowing loan and buyer’s credit and balance of Rs.35 crore will be used for funding organic and inorganic growth.