Maharashtra Seamless hits 52-week high on prepaying debts of Rs 234 crore

Maharashtra Seamless surged over 5 percent in the morning trade to hit a 52-week high of Rs 498 on June 12 after the DP Jindal group company said it was debt free, as it prepaid loans of Rs 234 crore.

The company funded the payment from its internal accruals, given its high order book and strong liquidity position, Maharashtra Seamless said in an exchange filing.

This is the second time in eight months that the company prepaid long-term loans.

At 10.52 am, shares of Maharashtra Seamless were trading 1.5 percent higher at Rs 480 on the National Stock Exchange. Volumes were also high, as six lakh shares changed hands on the exchanges against the one-month daily traded average of five lakh shares.

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The company ended FY23 with a bang, posting its highest-ever revenue, net profit as well dispatches. On an annual basis, revenue grew 42 percent from the previous year and the net profit 12 percent. In Q4, revenue shot up 16 percent on year, while net profit surged 172 percent.

The company’s order book grew to Rs 2,063 crore. “We expect margins to remain steady based on current trend of seamless pipes prices. This is because our order book is supported by back-to-back booking of raw
materials, leading to locking-in of margins and negating the impact of fluctuating raw material prices,” the management said during the earnings call.

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