Rama Steel Tubes Records 62% YoY Sales Volume Growth in Q1, Shares Surge 5%

4 Jul 2023 , 02:01 PM

Rama Steel Tubes witnessed a significant surge in its share price, jumping 5 % on July 4, following an impressive growth in sales volume for the first quarter of FY24.

The company reported a remarkable 62 % year-on-year increase in sales volume, selling 48,437.69 tonnes of structural steel tubes in Q1, compared to 29,833.96 tonnes in the same period last year.

Rama Steel Tubes attributed its sales growth to various factors, including an emphasis on increasing sales, expanding the share of value-added products, continuous product innovation, and a strong focus on cost optimization.

Over the years, Rama Steel Tubes has delivered impressive returns to its investors, with the stock price rising from Rs 3 in 2015 to its current level, representing a remarkable return of 1,097 %.

Foreign institutional investors (FIIs) and the promoter have increased their holdings in the company, while public investors have been reducing their stake.

However, Rama Steel Tubes witnessed a decline in its operating profit and net profit during the first half of FY23, recording figures of Rs 13.98 crore and Rs 9.36 crore, respectively, compared to Rs 16.49 crore and Rs 14.19 crore, respectively, in the previous fiscal year.

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