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.”