HIL will continue to add capex under the pipes segment, Dhirup Roy Choudhary, MD & CEO, told CNBC-TV18. The company reported stellar earnings for the June-ended quarter aided by the roofing solutions segment. HIL has reported a total income of Rs.994.67 crore during the period ended June 30, 2021 as compared to Rs.846.98 crore during the period ended March 31, 2021.
“The target now is Rs 1,000 crore (revenue) in the next 5-6 years for pipes and we are on track for that and we hope to have a consistent performance on this; 53 percent was the growth last year and this year also we hope to have 40 percent growth, if not more. Rs 400 crore was objectively possible from the same capex, but we will continue to add capex in this business,” said Roy Choudhary.
On the roofing business, he said that the first quarter is generally the best for the segment.
“Q1 is the best quarter for roofing and it is difficult to sustain that rate going forward for the other quarters, but Q4 again becomes good. So it’s a cyclic pattern in roofing.”
The management denied any merger and acquisition (M&A) plans at the moment.
"(But) we are going to use our cash very progressively,” said Roy Choudhary.
For the entire management interview, watch the video