Rama Steel Tubes announced Q1FY24 results: Revenue from Operations grew by 30.20% from Rs 2,400.25 million in Q1FY23 to Rs 3,125.16 million in Q1FY24. This growth was led by robust demand for our products in the domestic market as reflected through the sales volume growth of 62.35% on a YoY basis from 29,834 MT in Q1FY23 to 48,437 MT in Q1FY24. EBITDA increased by 71.60% from Rs 99.88 million in Q1FY23 to Rs 171.40 million in Q1FY24 led by an increase in the contribution of value-added products, increasing scale of operations, and improved manufacturing efficiency. EBITDA Margins increased by 138 bps from 4.10% in Q1FY23 to 5.48% in Q1FY24. PAT increased by 76.15% from Rs 42.34 million in Q1FY23 to Rs 74.58 million in Q1FY24. PAT Margins increased on YoY basis at 2.38% in Q1FY24 against 1.74% in Q1FY23. Commenting on the performance of Q1FY24, the management team of RSTL said, “We are happy to share with you our robust financial and business performance for Q1FY24. Our revenue from operations increased by 30.20% from Rs 2,400.25 million in Q1FY23 to Rs 3,125.16 million in Q1FY24. Our EBITDA margins showcased a healthy increase from 4.10% in Q1FY23 to 5.48% in Q1FY24 and PAT margins stood at 2.38% in Q1FY24 compared to 1.74% in Q1FY23. We are thrilled to announce a significant 62.35% growth in our sales volume in the first quarter of FY24 compared to last year. This remarkable sales performance was led by increasing demand for steel tubes and pipes across various industries coupled with our proactive approach of strategically capitalizing on upcoming opportunities enabling us to grow our market presence. However, the downward pressure on steel prices and the increase in the supply of Chinese steel in India did act as a bump in the road for us causing some margin pressure. We expect steel prices to stabilize by the end of FY24. We have entered into a significant and noteworthy partnership with JSW Steel, a leading Indian steel manufacturer. This collaboration encompasses various aspects, including the procurement of substantial 1,00,000 tons of Hot Rolled Coils (HRC) from JSW Steel on a nationwide scale, distribution of HRC throughout the entire western region of the country, and joining forces with JSW Coated Limited providing us an opportunity to produce and brand pre-galvanized pipes under the esteemed JSW Kalinga brand. This strategic alliance will lead to numerous competitive advantages, as it will grant us access to top-quality raw materials at competitive prices. Secondly, it will enable us to enhance our raw material procurement process, ensuring timely and efficient sourcing and boosting our supply chain management capabilities, ultimately leading to streamlined operations and improved overall efficiency. Thirdly, we will enjoy the patronage and will leverage the RSTL’s and JSW’s combined brand strength to make significant strides in gaining market share in the upcoming quarters. Looking ahead, we are confident to achieve growth and success in coming quarters based on the robust demand for steel products, structural shi towards steel tubes and pipes from conventional products, robust government push, and positive economic growth demonstrated by India, and favourable market conditions. Lastly, we thank our stakeholders for believing in us and standing tall with us in all situations.” Result PDF
Rama Steel Tubes announced Q2FY23 results: Q2FY23 consolidated: Total revenue of Rs 3,500.79 million for Q2FY23 showing robust growth of 78.64% as against Rs 1,959.66 million in Q2FY22 Total sales volume of 48,774.67 MT for Q2FY23 showing impressive growth of 82.89% as against 26,668.58 MT in Q2FY22 EBIDTA stood Rs 109.96 million in Q2FY23 against Rs 121.84 million in Q2FY22 PAT margin (including OCI) stood Rs 55.72 million in Q2FY23 against Rs 69.71 million in Q2FY22 H1FY23 consolidated: Total revenue of Rs 5,937.01 million for H1FY23 showing robust growth of 75.37% as against Rs 3,385.44 million in HIFY22 Total sales volume of 78,608.63 MT for H1FY23 showing an impressive growth of 68.33% as against 46,698.18 MT in HIFY22 EBIDTA stood Rs 209.14 million in HIFY23 against Rs 242.99 million in HIFY22 PAT margin (including OCI) stood Rs 104.32 million in HIFY23 against Rs 139.96 million in HIFY22 Commenting on performance: "We have reported a strong H1FY23 with the growth in revenue from operations being 75.37% and growth in sales volume of 68.33% on a Y-o-Y basis. There is growth in demand of our products having the highest level of quality and our ability to cater the needs of all our customers on timely basis. The announcement of huge government projects like UPPCL, Jal Shakti Abhyaan in the infrastructure sector & various public sector projects has boosted demand for our products significantly. We are also in process of entering into certain niche segments like supply of steel pipes and tubes to City Gas Distribution and solar energy power generation units. We plan to dedicate at least 25% of our production capacity of 3,00,000 MT to cater to the demand of the Government sector in the coming years, which is having an EBITA margin of 9%-10%, thereby significantly improving our overall margins. From the facility, in the process of being set up, in Nigeria, we have already signed purchase agreement of 15,000 MT p.a. for supply of specialty steel from Huihai Group Ltd, Hong Kong. The potential market size for specialty steel in Nigeria is 50,000 MTPA and we are happy to cater almost 1/3rd of the total market size. On the expansion front, we are in process of modernization of our plant located at Sahibabad, Uttar Pradesh with a major goal of de-bottlenecking operations; which will result in increasing our yield per tonne of finished products. The 1st phase of this modernization is expected to be completed by Q3 of the Fiscal Year 2023. Our efforts of backward integration at our plant in Anantpur District, Andhra Pradesh wherein we are in process of cold rolling and galvanizing steel sheets will lead to in-house raw material support of 50,000 MT in the upcoming years. With the expansion of Khopoli plant by 30,000 MT and the setting up of a facility in Nigeria by our step-down subsidiary, we expect our total capacity to increase to 3,00,000 MT by end of FY23. Further to this, we are in process of adding 10 SKUs to our repertoire on a monthly basis, projecting a total of 700 SKUs being produced in period of 2 years. This will strengthen our relationships with distributors by offering a complete range of products and make RSTL one of the leading suppliers of steel pipes and tubes in the forthcoming years. Moreover, our recent efforts at backward integration are expected to reduce dependency on external raw material suppliers. Further, even in such a difficult market, we were able to procure large orders and expect to procure more of such orders." Result PDF