- 10 Aug 2022
- ICICIdirect Research
Ratnamani reports mixed bag performance for Q1FY23RATNAMANI - 2068 Change: -16.80 (-0.81 %)
News: For Q1FY23, Ratnamani Metals and Tubes (RMTL) reported total sales volume of 75662 tonnes, up 45% YoY and 12% QoQ, higher than our estimate of 62000 tonnes. Revenue from operations for the quarter stood at Rs 977 crore, up 86% YoY flattish QoQ, higher than our estimate of Rs 915 crore. EBITDA for the quarter stood at Rs 131 crore, up 55% YoY however 22% QoQ, marginally lower than our estimate of Rs 141 crore. EBITDA margin for the quarter stood at 13.4% down 270 bps YoY and 390 bps QoQ , lower than our estimate of 15.4% . The ensuing PAT for the quarter stood at Rs 87 crore, up 73% YoY however down 22% QoQ, , marginally lower than our estimate of Rs 91 crore.
View: For Q1FY23, Ratnamani Metals and Tubes (RMTL) reported mixed set of numbers wherein topline came in higher than our estimate , however EBITDA and PAT came in marginally below our estimate. For the quarter, gross margins declined both QoQ as well as YoY basis which led to miss on the EBITDA and PAT front. During the quarter RMTL’s gross margins stood at 30% as compared to 34% in Q4FY22 and 37% in Q1FY23. RMTL’s order book as on August 1, 2022 was at Rs 2345 crore (Rs 2223 crore as on May 1, 2022). As on August 1, 2022, stainless steel (SS) order book was at Rs 730 crore (Rs 650 crore as on May 1, 2022) while carbon steel (CS) orders were at Rs 1615 crore (Rs 1573 crore as on May 1, 2022). Going forward, sequential increase in order book position (especially for the higher margin Stainless Steel segment) augurs well for the company.