Rs 4,002 Crore Order Book: This Pipe Manufacturer Reports Rs 558 Crore Profit for FY25, Declares Rs 5.80 Dividend Per Share
On a year-to-date basis, the small-cap stock has delivered a return of 12.57 per cent, while its 12-month return stands at 56.64 per cent.
Indian Hume Pipe Company has announced its financial results for the fourth quarter and full year ended March 2025, reporting an exceptional net profit of Rs 558.05 crore for FY25. This sharp rise in profit was primarily due to a one-time gain of Rs 545.22 crore from the sale of its land in Yelahanka, Bengaluru. The stock reacted positively to the earnings announcement, gaining 1.20 per cent to trade at Rs 412 per share as of 02:27 PM IST. On a year-to-date basis, the Small-Cap stock has delivered a return of 12.57 per cent, while its 12-month return stands at 56.64 per cent.
In the March 2025 quarter (Q4FY25), the company’s total income fell 2.96 per cent year-on-year to Rs 395.23 crore from Rs 407.29 crore in Q4FY24. The EBITDA for the quarter declined 23.34 per cent to Rs 59.10 crore. However, net profit surged to Rs 499.26 crore compared to Rs 43.67 crore in the same quarter last year due to the exceptional income from the land transaction.
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For the full financial year FY25, Indian Hume Pipe posted a 7.36 per cent increase in total income to Rs 1,500.17 crore. EBITDA improved by 7.63 per cent to Rs 195.12 crore, and profit before exceptional items rose 14.10 per cent to Rs 118.07 crore. The net profit, boosted by the land sale gain, recorded a year-on-year increase of 618.88 per cent.
The land transaction involved the sale of 40,875.668 square metres of freehold land in Bengaluru to Godrej SSPDL Green Acres LLP for Rs 559 crore. Out of the proceeds, Rs 376 crore has been parked as fixed deposits with SBI for collateral and future capex, while Rs 92 crore is invested in money market mutual funds to reduce debt and fund a proposed special dividend of Rs 4 per share.
In terms of operations, the company received fresh orders worth Rs 1,325.37 crore during the year, with nearly 48 per cent involving in-house manufacturing of PSC, BWSC, and PCCP pipes. This internal sourcing is expected to improve margins and reduce working capital requirements. Indian Hume Pipe also completed 12 projects with a combined value of Rs 2,437.74 crore across various states, including Uttar Pradesh, Gujarat, Tamil Nadu, and Andhra Pradesh.
As of 8th May 2025, the unexecuted order book stood at Rs 4,002.48 crore, reflecting an 8.23 per cent increase from Rs 3,698.17 crore a year earlier. Additionally, the company is the lowest bidder for four new projects totaling Rs 769.43 crore, which could further enhance its order book.
The Board of Directors has recommended a record dividend of Rs 5.80 per share (face value Rs 2), comprising a regular dividend of Rs 1.80 and a special dividend of Rs 4.00. This marks the highest dividend declared by the company since 2010 and is subject to shareholder approval at the upcoming Annual General Meeting.
Disclaimer: The article is for informational purposes only and not investment advice.