- 15 May 2025
- ICICIdirect Research
RATNAVEER PRECISION ENGINEERING REVENUE INCREASED BY 43% YOY
RATNAVEER - 164 Change: -4.74 (-2.80 %)News: Revenue increased by 43% YoY (-20.2% QoQ) to Rs 203 crore. EBIDTA margin improved by 510 bps YoY (+20 bps QoQ) to 8.2% on account of lower RM cost. Subsequently, EBIDTA was up 273% YoY (-18.6% QoQ) to Rs 16.7 crore. PAT increased by 91% YoY (-5.3% QoQ) to Rs 10.7 crore. For FY25, revenue is up 49.8% YoY to Rs 892 crore with EBITDA margin stands at 9.7% (vs 8.4% in FY24). PAT is up 50.8% YoY to Rs 46.8 crore in FY25
View: Operational performance remained strong, led by healthy demand in domestic markets with increasing share of value-added products. Going forward, revenue growth is expected to remain strong over the next 2-3 years, led by ongoing organic capex with increasing presence in key international markets and other higher growth segments. Margins are also expected to improve gradually led by backward integration, favourable product mix and operational efficiencies. Company is in process of expanding its capacities (phase -1 already commissioned and phase -2 expected by Mar-26). Once both the capex plans become fully operational, company expects to achieve topline of Rs 1600 crore in next 2-3 years (implies ~20% CAGR over FY25-28E) with significant improvement in EBITDA margins at 13% (from 9.7% at present)
Impact: Positive