Rajratan Global Wire (517522) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw a marked improvement in financial and operational performance after previous sluggish quarters, driven by higher demand and reduced imports of bead wire.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved and reviewed by the Board and auditors.

• The consolidated results include Rajratan Thai Wire Company Limited and Rajratan Wire USA Inc.

• Commercialization of the new Chennai plant and maximized utilization of existing facilities are expected to sustain performance improvements.

Financial highlights

• Consolidated revenue from operations for Q1 FY25 was ₹22,014 lakhs, up from ₹20,385 lakhs year-over-year.

• EBITDA increased 17.44% year-over-year to ₹2,950 lakhs, with EBITDA margin up 108 bps to 13.40%.

• PAT rose 22.61% year-over-year to ₹1,524 lakhs, with PAT margin up 82 bps to 6.92%.

• Sales volume increased 19.19% year-over-year to 26,462 MT.

• Basic and diluted EPS for the consolidated entity were ₹3.00 for Q1 FY25.

Outlook and guidance

• Cost increases from Q1 will be passed to customers in Q2, expected to strengthen margins.

• Increased manufacturing and sales volumes, improved pricing power, and enhanced realizations anticipated.

• Commercialization and customer approvals for the Chennai plant to drive revenue growth, with PLI scheme eligibility boosting revenues.

• 20% demand growth in Thailand expected from Q1 to Q2 based on market outlook.