Indian Hume Pipe’s order book position has improved significantly from Rs. 1,542 crore as on June 30 2013 to Rs. 2,730 crore as on June 30 2014 which is about 3.28 times the revenue of FY14. These orders are executable over a period of 18-24 months. Most of these orders have inbuilt price escalation clauses safeguarding the company to a great extent against any severe raw material price fluctuations and are also at better margin against the earlier orders. Further, unlike in the past, the company’s orders have been geographically well spread. In the past Andhra Pradesh used to account for nearly 75% of its business. However, this dependence has come down to just around 35% now.
IHP is engaged in providing engineering, procurement, construction and commissioning services in water supply, irrigation and sewerages related projects. Over a period, IHP has evolved from contract manufacturer of pipes to executing pipe laying contracts. Majority of IHP’s clients consist of various State and Central Government agencies. IHP has operations spread across the major states including Madhya Pradesh, Karnataka, Tamil Nadu, Uttar Pradesh, Andhra Pradesh and Maharashtra.
