Auto Parts & Equipment company Rajratan Global Wire announced Q4FY23 results: Operating revenue dropped by 11% YoY to Rs 21,943 lakh EBITDA lowers by 29% YoY to Rs 3,380 lakh and EBITDA margin lowers by 381 bps at 15.40% PBT was lower by 36% YoY at Rs 2,580 lakh PAT down by 45% YoY to Rs 2,027 lakh Result PDF
Auto Parts & Equipment firm Rajratan Global Wire Announced Q1FY23 Result : Average Capacity utilisation stood at 85%. Digitisation of manufacturing process with introduction of machine data loggers implemented across all production departments. Zero Liquid discharge facility fully installed and operational at India manufacturing unit. New patenting furnace installed for 2500 MT, now operational thereby debottlenecking for incremental capacity utilisation. Improved our on-time dispatch rate to 92%. Customer complaints continued to be at record low levels of 0.016%. Capacity expansion update (Chennai – Greenfield – 60,000 TPA): All approvals received from Govt of Tamil Nadu as per targeted schedule. 1st milestone of construction work completed as per schedule with 99% adherence to schedule. Foundation stone laid on 4th July 2022 by Hon’ble CM of Tamil Nadu. Commenting on the performance, Mr. Sunil Chordia, CMD, Rajratan Global Wire Ltd said “We have continued from where we left off in FY2022 and have continued to focus on outperforming on previous benchmarks across all our production, sales, productivity, customer service and performance metrices. 3 key levers namely our recent debottlenecking at our Pithampur plant, our Thailand plant expansion and our upcoming Greenfield capacity at Chennai will also help us to grow at our targeted 20-25% CAGR (in volume terms) over the next 3 to 5 years. We have also taken up digitisation efforts at our Pithampur (India) plant, which will also be replicated for our upcoming Chennai plant, this will help our production processes and systems become more efficient and smarter. Our rejection rates have continued to be below 0.02% in India which showcases our commitment to quality. Overall our entire team at Rajratan is geared up to “Outperform” on what we have already achieved” Result PDF
Auto Parts and Equipment company Rajratan Global Wire Limited declares Q3FY22 result: Major developments during the quarter - India The company broad based its sectoral mix beyond the tyre sector: it addressed aluminium clad and optical fibre cable manufacturers. The company executed a long term lease deed with Sipcot Industrial park and received possession of land for its proposed greenfield expansion in Chennai. Commenced a new high speed strand pickling line to enhance productivity and product quality. Company capitalised on competitive ocean freight from India to increase exports to USA and Europe. Major developments during the quarter - Thailand New warehouse constructed with storage capacity of 5,000 MT. Company embarked on a new powder coating plant for spools, which will enhance spools and product quality. Company completed modifications related to the government’s Environment Ipact Assessment requirements. Enhanced shop floor safety and environmental measured. Commenting on the performance, Mr. Sunil Chordia, CMD, Rajratan Global Wire Ltd said “This quarter performance has continued to build up on the momentum of our efforts to grow with sustainable profits. This has led to our nine-month performance surpassing annual performances of all previous years. We continue to see robust demand for our products in India and Thailand, which has led us to expand our capacity in Thailand by 50% to 60,000 TPA and to work towards setting up a new greenfield capacity in Chennai for an additional 60,000 TPA. Tyre demand continues to be good in domestic and international markets; all major tyre companies are looking to expand capacities in India. We have also continued to focus on improving our overall ESG scores and production efficiencies in both our India and Thailand plants. We continue to “Outperform” and work as a team to deliver value to our shareholders.” Result PDF
Conference Call with Rajratan Global Wire Management and Analysts on Q2FY22 Performance and Outlook. Listen to the full earnings transcript.
Strong demand and incremental capacity leads to best ever Revenue, EBITDA and PAT Financial Performance highlights: Major developments during the quarter - India: The company strengthened its TPM commitment to address JIPM standards. Company strengthened shop floor safety measures. Company introduced an incentive scheme to enhance 5S discipline compliance. Company strengthened its quality assurance and quality control review phenomenon. Company tightened conversion cost and general administrative expense controls. Major developments during the quarter - Thailand: Extension of the building was completed; warehouses construction neared completion. Water treatment plant upgradations was finalised. Pickling line upgradation reported progress. New coating line design and technology neared completion. Environmental Impact Assessment progressed as per schedule Outlook for H2 FY2021-22 Tyre (and bead wire) demand expected to sustain into the second half of FY2021-22. The company expects to be allotted land in Sipcot Industrial Park for its proposed third plant. The company is engaged in discussions with EPC contractors for timely plant construction. Wire rod costs expected to increase following an increase in pet coke prices. Commenting on the performance, Mr. Sunil Chordia, CMD, Rajratan Global Wire Ltd said “We have continued to build up further on the momentum set in the last 18 months since having completed our expansion in India. The company has delivered its highest ever Revenue, EBITDA and PAT ever during the quarter, led by strong demand for bead wire in domestic and export markets. More and more customers are looking to increase their engagement with Rajratan, which has pushed us to setup dedicated teams to engage periodically with customers to ensure timely deliveries. We continue to focus on our vision to become the leading and most preferred bead wire manufacturer and supplies to tyre companies in India and globally. We continue to “Outperform” and work as a team in the current challenging times to deliver value to our shareholders.” Result PDF