India: Ratnamani Metals posts best ever performance in FY23

• Revenue from operations up 47% y-o-y in Q4FY23
  
  
• Net profit up 76% at INR 192.07 crore
  
  
• EBIDTA up 66.92% at Rs 297.85 crore
  
  

A leading manufacturer of carbon steel welded pipes (ERW, L-SAW and H-SAW), stainless steel and carbon steel pipes, Ratnamani Metals & Tubes Limited, has announced its financial results for the quarter ended March 31, 2023.

Expansion across all sectors has been driven primarily in refineries, process industries and the core sector, which could have a positive impact on infrastructure demand.

Demand for pipes is expected to increase globally on both carbon steel (CS) and forged steel (FS) segments. However, the order situation for oil and gas pipelines looks subdued in India, while business development in other segments and SS pipes and tubes remains encouraging, said Manoj Sanghvi, head of steel business at Ratnamani.

Key takeaways:

1.Revenue from operations up 47% in Q4FY23: Total revenue (standalone) from operations stood at INR 1436 crore in Q4FY22, up 47% y-o-y against INR 974.06 crore in Q4FY22. The same increased by 36% q-o-q against INR 1,057.4 crore in Q3FY23.

2. Net profit up 76% y-o-y in Q4FY23: Net profit (standalone) rose by 76% y-o-y to INR 196.07 crore in Q4FY22 against 111.614 crore a year ago. Net profit increased by 48% q-o-q against 132.41 crore in Q3FY23. This is majorly due to product mix, better utilsation and operating efficiency.

3. EBITDA: EBITDA (standalone) stands at INR 297.85 crore in Q4FY23, up 66.92% from INR 178.44 crore in Q4FY22. While, EBITDA (consolidated) stands at Rs. 307.12 crore in Q4FY23, up 72.09% from INR 178.46 crore in Q4FY22.

4. Current order book: Presently, Ratnamani's order book stands at INR 2,600 crore out of which export orders are at around INR 557 crore, nearly 20% of the total. Moreover, the demand in oil and gas segments were low during this quarter, while the demand in water segment increased both in the domestic and overseas markets.

5. Captive solar project: The company has successfully commissioned a captive solar project of 15MW in March which will further help in reduction of carbon emmissions and power cost.

6. Growth and expansion in FY24: The company is projecting top-line growth of around 15-20%, with marginal expansion of 200 basis points (2%) for FY24.