Rs 1,192.13 crore order book & DIIs increase stake: Piping solutions company total income rises by 15 per cent & PAT by 379 per cent YoY in H1FY25
The order book as on September 30, 2024 stood at Rs 1,192.13 crore.
Dee Development Engineers Limited (DDEL) is a global leader in specialized process piping solutions, catering to sectors like oil and gas, power (including nuclear), chemicals, and other process industries. Offering a comprehensive service from design to manufacturing, DDEL produces a wide range of piping products including high-pressure systems and custom components. As India's largest player in this domain by installed capacity, the company has a strong international footprint, generating over half its revenue from markets like Canada, Thailand, and the USA. With expanding manufacturing facilities in India and Thailand, DDEL is also venturing into power generation through biomass plants and wind turbine tower production, positioning itself for sustained growth and innovation across multiple sectors.
The company is dedicated to automation and expansion. It is currently establishing New Anjar Facility II, which will increase its production capacity to 15,000 metric tonnes, bringing its total capacity to 1,12,500 metric tonnes by the end of the third quarter of fiscal year 2025. Strategically located near Kandla Port in Gujarat, this facility will reduce logistics costs, enhance production efficiency, and lower manpower costs. To optimize operations, New Anjar Facility II will focus on the Oil and Gas sector, while Palwal Facility specializes in the Power sector. Additionally, the company has received board approval to establish a plant for manufacturing seamless pipes, addressing the rising demand for high-quality, durable materials in critical applications like thermal power plants exceeding 660 megawatts and subsea projects. This new plant, with an annual capacity of 7,000 tonnes and a capital expenditure of ₹9,000 lakhs, will manufacture forged seamless pipes of thicknesses up to 120 millimetres, utilizing high-alloy steel and stainless steel (SS) grades.
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According to Quarterly Results, the total income increased by 13 per cent to Rs 210 crore and net profit increased by 125 per cent to Rs 22.26 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the total income increased by 15 per cent to Rs 345.62 crore and net profit increased by 379 per cent to Rs 25.45 crore in H1FY25 compared to H1FY24. The order book as on September 30, 2024 stood at Rs 1,192.13 crore.
The company has a market cap of Rs 1,911 crore and an order book of over Rs 1,192.30 crore as of September 2024. On Wednesday, shares of DDEL plunged 5.97 per cent to Rs 274.05 per share from its previous closing of Rs 291.45 per share. The stock’s 52-week high is Rs 400 while its 52-week low is Rs 226. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.