100% Gain From 52W Low, Metal Stock Clocks 76% PAT Growth In Q1

Rama Steel Tubes has declared its April-June quarter results. The iron and steel products manufacturer said that its revenue soared over 30 per cent YoY in the quarter at Rs 312.52 crore. The same had stood at Rs 240 crore in the June quarter of the previous financial year.

The firm's net profit grew by 76 per cent to Rs 7.46 crore as against Rs 4.23 crore from the year-ago period. PAT margins increased on YoY basis at 2.38 per cent in Q1 FY24 against 1.74 per cent in Q1 FY23.

EBITDA increased by 71.60 per cent from Rs 9.98 crore in Q1 FY23 to Rs 17.1 crore in Q1 FY24 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 per cent in Q1 FY23 to 5.48 per cent in Q1 FY24.

A significant 62.35 per cent growth in sales volume was reported 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 grow our market presence," the management said.

"However, the downward pressure on steel prices, and increase in 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," it added.

The company also entered into a 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 Wednesday, the shares of Rama Steel Tubes closed on the BSE at Rs 38.03 apiece down by 2.19% over the previous close of Rs 38.88. The stock made a 52-week-high of Rs 46.10 on (10/01/2023) and a 52-week-low of Rs 19.02 on (13/10/2022), indicating that at the current market price, the stock is trading 99.94% above the 1-year low and 17.50% below the 1 year high.