- 18 Jul 2024
- ICICI Securities
SOLID OPERATIONAL PERFORMANCE IN Q1FY25
RATNAVEER - 133 Change: -1.79 (-1.33 %)News: Revenue increased significantly by 73.6% YoY (+43.8% QoQ) to Rs 204.2 crore in Q1FY25. EBIDTA margin stood at 12% (flat YoY, +888 bps QoQ). Subsequently, EBIDTA was up 68.2% YoY (+5.5x QoQ) to Rs 24.6 crore. PAT increased by 52.4% YoY (+123% QoQ) to Rs 12.5 crore.
Views: Operational performance during the quarter remained strong, led by improvement in utilization of existing capacities driven by healthy demand for company’s products (finishing sheets, washers, tubes & pipes). Going ahead, we expect company to see substantial growth in revenues & profitability, led by ongoing capex for expanding its capacities across the key product lines and augmenting the overall portfolio with new value-added products (circlips, electro-polished and seamless tubes & pipes and nuts & bolts). Moreover, focus on backward integration, increasing share into better-margin segments like (railways, defence, energy etc) and usage of captive solar power would further help in improving margins.
Impact: Positive