- 11 May 2023
- ICICI Securities
RATNAMANI POSTS ROBUST PERFORMANCE; EBITDA MARGINS SURPRISE POSITIVELY
RATNAMANI - 2838 Change: 50.20 (1.80 %)News: For Q4FY23, Ratnamani Metals and Tubes (RMTL) reported revenue from operations (standalone) of Rs 1436 crore, up 47% YoY and 36% QoQ, notably higher than our estimate of Rs 1126 crore. Standalone EBITDA for the quarter was at Rs 292 crore, up 73% YoY, 50% QoQ (our estimate of Rs 179 crore). Ensuing standalone PAT for the quarter was at Rs 196 crore, up 75% YoY, 48% QoQ (our estimate of Rs 121 crore).
Views: RMTL reported a robust performance for Q4FY23, aided by better than expected sales volumes. For Q4FY23, RMTL reported total sales volume of 106260 tonnes, up 57% YoY and 60% QoQ, significantly higher than our estimate of 71500 tonnes. This resulted in a positive operating leverage , wherein EBITDA margin improved notably both on QoQ as well as YoY basis . RMTL’s standalone EBITDA margin for the quarter was at 20.3% up 300 bps YoY and 190 bps QoQ , notably higher than our estimate of 15.9%.
Impact: Positive