Sambhv Steel Tubes Limited has announced robust financial results for the first quarter, alongside ambitious expansion plans that signal strong growth prospects for the company.

Record-Breaking Q1 Performance

The company reported its highest-ever quarterly performance across key metrics:

• Revenue surged by 69% year-over-year to ₹5,586.29 crore
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 58% to ₹727.00 crore
• Profit After Tax (PAT) increased by 35% to ₹334.00 crore

This stellar performance was driven by increased sales volumes and improved capacity utilization, particularly in the Pre-galvanized (GP) Pipes and Stainless Steel divisions.

Expansion Plans

In a significant move, Sambhv Steel Tubes has unveiled plans for a 1.2 million tonnes per annum (MTPA) capacity expansion. This strategic initiative aims to boost the company's value-added products portfolio and maintain high-margin growth through FY27.

The expansion strategy includes:

1. Developing coastal distribution capabilities to enhance market reach
2. Focusing on high-margin value-added products such as CRFH Pipes, SS CR Coil, and Galvanised Coils & Pipes

Capacity Enhancement

The company has received Consent to Establish (CTE) for doubling its GP coils and Stainless Steel CR coils capacity from 58,000 MTPA to 116,000 MTPA each. This move is expected to strengthen Sambhv Steel Tubes' position in the value-added products segment.

Environmental Clearance Progress

A public hearing for Environmental Clearance of the Kesda Plant was successfully conducted by the Chhattisgarh Environment Conservation Board, marking a crucial step in the company's expansion plans.

Management Commentary

Mr. Suresh Goyal, Chairman & Executive Director, stated, "Sambhv Steel Tubes Limited, recognized as a single-location backward-integrated producer of structural pipes and tubes along with stainless steel coils, marked a key achievement with its debut on India's premier stock exchanges. With a diversified product portfolio & integrated presence across the pipes, tubes, & stainless steel value chain, we remain committed to sustainable growth."

He added, "Sambhv is well-positioned to capitalize on rising demand and lead India's steel industry."

The company's strategic expansion and focus on value-added products, coupled with its strong Q1 performance, position Sambhv Steel Tubes Limited for continued growth in the competitive steel industry landscape.

Sambhv Steel Tubes Limited, a prominent player in the Indian steel products manufacturing sector, has announced its financial results for the first quarter, showcasing significant growth across key metrics.

Strong Revenue Growth

The company reported a substantial increase in revenue from operations, which rose to INR 5,586.29 crore for the quarter. This represents a remarkable 69% growth compared to INR 3,307.75 crore in the corresponding quarter of the previous year.

Profitability Boost

Sambhv Steel Tubes' net profit stood at INR 333.99 crore, up from INR 247.55 crore in the same quarter last year, marking a significant 35% year-on-year increase. This growth in profitability underscores the company's operational efficiency and strong market position.

Earnings Per Share

The company's earnings per share (EPS) improved to INR 1.39 for the quarter, compared to INR 1.03 in the same period last year, reflecting the positive impact of increased profitability on shareholder value.

Financial Highlights

Recent Corporate Developments

Successful IPO Completion

Sambhv Steel Tubes recently completed its Initial Public Offer (IPO) of 6,58,64,549 equity shares, raising a total of INR 5,400 crore. The IPO comprised a fresh issue of 5,36,69,429 shares and an offer for sale of 1,21,95,120 shares by existing shareholders. The company's shares were subsequently listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Divestment of Associate Company

During the quarter, Sambhv Steel Tubes divested its interest in Clean Max Opia Pvt. Ltd. (CMOPL). This decision was made due to CMOPL's failure to fulfill its obligations under an Energy Supply Agreement, specifically its inability to acquire the required land and obtain Stage II connectivity approval for a project.

Management Commentary

Vikas Kumar Goyal, Managing Director & CEO of Sambhv Steel Tubes Limited, stated, "We are pleased to report a strong start to the fiscal year, with significant growth in both our top and bottom lines. The robust demand for our steel products and our operational efficiencies have contributed to this performance. Our recent IPO has further strengthened our financial position, enabling us to pursue growth opportunities and enhance shareholder value."

Outlook

With its strong quarterly performance and recent successful IPO, Sambhv Steel Tubes appears well-positioned to capitalize on the growing demand in the Indian steel sector. The company's focus on operational efficiency and strategic decisions, such as the divestment of non-performing assets, indicate a commitment to sustainable growth and profitability.

Investors and market observers will be keenly watching Sambhv Steel Tubes' performance in the coming quarters, as the company leverages its enhanced financial capabilities and market position post-IPO.