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
Conference Call with Rama Steel Tubes Management and Analysts at the Motilal Oswal Ideation Conference. Listen to the full transcript. <