Iron & Steel Products company Rama Steel Tubes announced Q3FY24 results: Q3FY24 Financial Performance: Total Revenue: The company reported a total revenue, including other income, of Rs 2,641.67 million, marking a QoQ increase of 29.20%. Total Sales Volume: Rama Steel Tubes reached a total sales volume of 46,919.80 metric tons, which is a 31.11% increase compared to the previous quarter. EBIDTA: The EBIDTA stood at Rs 191.97 million, witnessing a 42.26% increase in QoQ. PAT Margin: The Profit After Tax (PAT) Margin, including Other Comprehensive Income (OCI), reached Rs 86.61 million, a significant QoQ rise of 93.93%. 9MFY24 Financial Performance: Total Revenue: In a nine-month comparison, the total revenue decreased by 17.64% to Rs 7821.43 million. Total Sales Volume: Sales volume saw a slight decline of 0.52%, totaling 1,31,138 metric tons. EBIDTA: The EBIDTA for the nine months increased by 39.34% compared to the previous year, amounting to Rs 498.31 million. PAT Margin: Net profit including OCI observed an 8.43% increase year-over-year, totaling Rs 200.07 million. Business Strategy and Updates: Rama Steel Tubes decided to rescind the proposed Scheme of Arrangement for amalgamating Lepakshi Tubes Private Limited with Rama Steel Tubes Limited, prioritizing separate operations for competitive advantage. The company experienced warrant forfeiture from "The Great International Tusker Fund" due to non-receipt of due amount, resulting in 16,55,760 warrants being forfeited. Forfeited amount of Rs 316.25 Lakh was transferred to "Capital Reserve" under Other Equity. After warrant conversion into equity shares, 36,00,000 Equity Shares were allotted on October 11, 2023, along with bonus shares to the warrant holders. Richi Bansal, Executive Director, said, "RSTL has delivered steady growth in India volumes despite the volatile operating environment. In 9MFY24, Sales volumes are almost unchanged as compared to 9MFY23. In Q3FY24, Sales volumes and revenue increased respectively by 31.11% and 29.20% as compared to Q2FY24 however in Q3FY24, sales volume declined YoY due to the de-stocking of material in the expectation of correction in prices. In the first two months of Q3FY24, the global steel prices had suddenly fallen by 12-13% from the peak levels. Due to wide raw material price fluctuations, Revenues in value terms declined by 17.64% during 9MFY24 as compared to 9MFY23. EBIDTA has increased by 25.69% and 39.34% respectively during Q3FY24 and 9MFY24 on YoY basis." Result PDF
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