Rama Steel Tubes revenue almost triples to Rs138.3cr in Q1FY22; Stock up 1%

Net Profit of the company stood at Rs7.1cr in Q1FY22, compared to a loss of Rs1.92cr in Q1FY21.

August 17, 2021 11:01 IST | India Infoline News Service
Quarterly Results
Rama Steel Tubes Limited (RSII), one of the leading manufacturers of Steel Pipes & Tubes and G.I. Pipes in India, in its board meeting held on August 14, 2021, has inter-alia considered and approved the unaudited financial results of the company for the first quarter ended on June 30, 2021.

The company’s revenue from operations increased by 191.4% from Rs47.45cr in Q1FY21 to Rs138.3cr in Q1FY22 mainly led by demand surge for all its products and better price realizations, the company said in a filing on Monday.

Total sales volumes increased by 1107% to 20,029.60 Metric tons in Q1FY22 as compared to 9698.05 Metric tons in Q1FY21; as the company saw a demand surge across our product segments.

EBITDA increased by 4617.5% from Rs0.25cr in Q1FY21 to Rs11.56cr in Q1FY22. EBITDA margins have increased and reported at 8.36% in Q1FY22 versus 0.52% in Q1FY21, same quarter previous year witnessed a national lockdown for almost 40 days and following consequences of uncertainties in the pandemic period.

Net Profit of the company stood at Rs7.1cr in Q1FY22, compared to loss of Rs1.92cr in Q1FY21. Consolidate Diluted EPS for Q1FY22 is Rs4.18 per share (of the face value of Rs5 Each) as compared to Rs -1.14 per share in Q1FY21.

At around 11.03 AM, Rama Steel Tubes Limited was trading at Rs253.90 per piece up Rs2.80 or 1.12% on the BSE. The stock hit a day's high of Rs254.00 per piece during intraday trade on Tuesday.

Business updates
  • Addition of Capacities- RSTL is in the process of increasing in capacities at the Lepakshi Plant from 36000 MTPA to 72000 MTPA. This addition of capacities will be completed by October, 2021 and commercial operations shall commence around same time. This additional capacity will be manufacturing different size of products from the additional capacity and these are high value-added products which will. enable in margin expansion going forward.
  • Upgradation- Sahibabad plant is under revamping and modernization, keeping pace with changing times, major part of the modernization will be implemented in this fiscal only. This will give enhance operating efficiencies and quantum of the plant again adding to margin accretion with the increased efficiency and production.
  • New Highty Experienced Professionats hired- RSTL has recently hired some highly experienced professionals from various large-scale companies for heading some key business functions. These professionals not only bring knowledge, experience and technical expertise with them but also well-defined network.
  • Focus on Exports- Company has presence in 16 countries where it exports Building related material and steel allied products. RSTL expects its export contribution to grow by -40% in FY22 attributable to the surge in demand from countries like Ethiopia, Nigeria, South Africa and European countries.
Naresh Kumor Bansol, Chairman & Managing Director, Rama Steel Tubes Limited, said: “Over post 2 years, we have reworked business, operating and manufacturing strategies, we have taken up expansion and modernization exercises beginning from this fiscal. Despite of a national lockdown and facing the most challenging times RSTI is witnessing a rapid surge in demand across the country. Now we are confident thot these efforts will definitely take RSIL to newer heights and enable us to o higher market share. With new and highly experienced professionals in the team, we will have a focused approach for leading our key business functions for operational and cost efficiencies, acquiring newer customers and tap higher market share.”

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