- 12 Jul 2024
- ICICI Securities
RATNAVEER PRECISION ENGINEERING RELEASED AN UPDATE OUTLINING THE OPERATIONAL PERFORMANCE FOR Q1FY25
RATNAVEER - 141 Change: 1.10 (0.79 %)News: Ratnaveer Precision Engineering has released an update outlining the operational performance for Q1FY25 and overall outlook for FY25 and ahead. Key highlights are: 1) Volume growth has been modest during the quarter QoQ in its key segments – washers and tubes & pipes 2) volume growth and realizations are expected to improve considerably for FY25 in both domestic & export markets led by expansion of capacities with new value-added products 3) margins are expected to improve substantially on account of favourable product mix and venturing into newer high growth markets 4) fund raising of Rs 95 crore via preferential allotment will be primarily utilized for the business expansion and long term working capital requirement.
Views: Overall commentary is largely in-line with management’s earlier guidance and our expectations. We remain positive on Ratnaveer as we expect company’s operational and financial performance to improve significantly over the coming period led by healthy demand driven by buoyant capex, expansion of capacities, improving product mix and operational efficiencies.
Impact: Positive