Rajratan Global Wire closes 5% higher on strong Q1FY22 performance

Good demand in domestic & export markets drives healthy PAT and revenue. Progress is being made on capacity expansion plans, the company said.

Jul 22, 2021 04:07 IST India Infoline News Service

Rajratan Global Wire Ltd on Wednesday announced its audited financial results for the first quarter ended June 2021 (Q1FY22). The company’s Profit After Tax (PAT) grew to Rs21.92cr in the first quarter ended June 30, 2021, compared to Rs1.65cr in the same quarter last year. Profit Before Tax (PBT) increased to Rs28.75cr in Q1FY22 compared to Rs2.01cr in Q1FY21.

Sales Volumes grew to 19,833 tonnes compared to 9,239 tonnes in Q1FY21. Revenue rose to Rs182.29cr compared to Rs64.65cr in Q1FY21. EBITDA grew to 36.06cr compared to Rs7.76cr in Q1FY21. EBITDA Margin at 19.76% compared to 12% in Q1FY21. EPS at Rs21.58 per share compared to Rs1.62 per share in Q1FY21.

“Q1FY21 had faced national lockdown thereby impacting production and sales for 40 days,” the company said in a filing on Wednesday.

Rajratan Global Wire Ltd ended at Rs1,764.95 per piece up by Rs84 or 5% from its previous closing of Rs1,680.95 per piece on the BSE. The scrip opened at Rs1,721.55 and has touched a high and low of Rs1,764.95 and Rs1,721.55 respectively, during intraday trade on Thursday.
“Despite FY 2021-22 starting off on a challenging note led by an impact from the second wave of Covid-19, the company has delivered strong performance and growth. This was primarily driven by strong demand from domestic tyre manufacturers as well as exports."

"Our timely expansion in India in FY20 (to 72,000 TPA) has started bearing fruits for us as we are aiming to increase the capacity utilisation levels over the current year and next year for the expanded capacity at Pithampur, Madhya Pradesh. Similarly, we have now taken up the expansion of our capacity in Thailand from 40,000 TPA to 60,000 TPA owing to our increased traction in the region as well as increasing market share. Post this expansion (expected by end FY22), Rajratan will become the second largest bead wire manufacturer in Asia outside China with a combined capacity of 120,000 TPA (for bead wire),” Sunil Chordia, CMD, Rajratan Global Wire Ltd, said.

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