Multibagger Alert: Rajratan Global Wire posts highest ever consolidated profit for Q3FY22
India's leading manufacturer of high carbon steel wire, Rajratan Global Wire has announced its financial results for the third quarter and nine months ended December 31, 2021.
Key performance highlights on a consolidated basis for the Q3FY22 are as follows:
- Net sales for the quarter stood at Rs 221.83 crore up 39.3 per cent YoY
- EBITDA for the quarter stood at Rs 47.34 crore up 80.8 per cent YoY
- EBITDA margin for the quarter stood at 21.34 per cent up 489 basis points versus 16.45 per cent in Q3FY21
- Net profit stood at Rs 32.77 crore up 122.5 per cent YoY
- EPS stood at Rs 32.27 up 122.5 per cent YoY versus Rs 14.51 in Q3FY21
To quote Sunil Chordia, CMD, Rajratan Global Wire, from a filing with the exchange, “We continue to see robust demand for our products in India and Thailand, which has led us to expand our capacity in Thailand by 50 per cent to 60,000 TPA and to work towards setting up a new greenfield capacity in Chennai for an additional 60,000 TPA. Tyre demand continues to be good in domestic and international markets; all major tyre companies are looking to expand capacities in India.”
The company has provided the following outlook for Q4 FY22:
- Automotive market is expected to revive from February’22 and normalize by March’22 with the domestic and export tyre demand robust.
- EPC contracts under finalisations for Chennai green-field expansion.
- Digitization of manufacturing/production process will extend into Q4 FY2021-22.
- Indian tyre industry demand is anticipated to grow by 13-15 per cent in the OEM segment and 7-9 per cent in replacement market segment in FY22.
Rajratan Global Wire was established in 1989. It manufactures bead wire, high-carbon steel wire with specialization in TBW, which is bronze-coated and used in tyres and drawn steel wire (known as black wire), used in automobile, construction and engineering industries.
The company’s stock price has shot up like a rocket, rallying 57.33 per cent in six months and more than 497 per cent over the last 1 year.
Investors should keep an eye on this counter for more action.