Rama Steel Tubes announced Q1FY24 results:
- Revenue from Operations grew by 30.20% from Rs 2,400.25 million in Q1FY23 to Rs 3,125.16 million in Q1FY24. This growth was led by robust demand for our products in the domestic market as reflected through the sales volume growth of 62.35% on a YoY basis from 29,834 MT in Q1FY23 to 48,437 MT in Q1FY24.
- EBITDA increased by 71.60% from Rs 99.88 million in Q1FY23 to Rs 171.40 million in Q1FY24 led by an increase in the contribution of value-added products, increasing scale of operations, and improved manufacturing efficiency.
- EBITDA Margins increased by 138 bps from 4.10% in Q1FY23 to 5.48% in Q1FY24.
- PAT increased by 76.15% from Rs 42.34 million in Q1FY23 to Rs 74.58 million in Q1FY24.
- PAT Margins increased on YoY basis at 2.38% in Q1FY24 against 1.74% in Q1FY23.
Commenting on the performance of Q1FY24, the management team of RSTL said,
“We are happy to share with you our robust financial and business performance for Q1FY24. Our revenue from operations increased by 30.20% from Rs 2,400.25 million in Q1FY23 to Rs 3,125.16 million in Q1FY24. Our EBITDA margins showcased a healthy increase from 4.10% in Q1FY23 to 5.48% in Q1FY24 and PAT margins stood at 2.38% in Q1FY24 compared to 1.74% in Q1FY23.
We are thrilled to announce a significant 62.35% growth in our sales volume in the first quarter of FY24 compared to last year. This remarkable sales performance was led by increasing demand for steel tubes and pipes across various industries coupled with our proactive approach of strategically capitalizing on upcoming opportunities enabling us to grow our market presence. However, the downward pressure on steel prices and the increase in the supply of Chinese steel in India did act as a bump in the road for us causing some margin pressure. We expect steel prices to stabilize by the end of FY24.
We have entered into a significant and noteworthy partnership with JSW Steel, a leading Indian steel manufacturer. This collaboration encompasses various aspects, including the procurement of substantial 1,00,000 tons of Hot Rolled Coils (HRC) from JSW Steel on a nationwide scale, distribution of HRC throughout the entire western region of the country, and joining forces with JSW Coated Limited providing us an opportunity to produce and brand pre-galvanized pipes under the esteemed JSW Kalinga brand. This strategic alliance will lead to numerous competitive advantages, as it will grant us access to top-quality raw materials at competitive prices. Secondly, it will enable us to enhance our raw material procurement process, ensuring timely and efficient sourcing and boosting our supply chain management capabilities, ultimately leading to streamlined operations and improved overall efficiency. Thirdly, we will enjoy the patronage and will leverage the RSTL’s and JSW’s combined brand strength to make significant strides in gaining market share in the upcoming quarters.
Looking ahead, we are confident to achieve growth and success in coming quarters based on the robust demand for steel products, structural shi towards steel tubes and pipes from conventional products, robust government push, and positive economic growth demonstrated by India, and favourable market conditions. Lastly, we thank our stakeholders for believing in us and standing tall with us in all situations.”