Rajratan Global Wire (517522) Q2 24/25 earnings summary

Executive summary

• Achieved strong volume growth: 23% in India and 32% in Thailand for H1FY25, with total wire sales up 10% year-over-year; Q2FY25 performance improved due to bead wire demand and new plant commercialization.

• Chennai plant commenced phased production, contributing 1,000 tons in Q2, with plans to ramp up to 14,000 tons for the year and assets capitalized as operational.

• Focus remains on maintaining and growing market share in India (42%) and Thailand (over 30%) despite increased competition.

• Strategic push to expand exports, especially to Europe and North America, with approvals and trial lots underway.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30th September 2024 were approved and reviewed by the Board and auditors.

Financial highlights

• Q2FY25 consolidated revenue was ₹24,533 lakhs, up 14% year-over-year, with sales volume up 16% to 28,715 MT; EBITDA increased 12% to ₹3,789 lakhs.

• PAT for Q2FY25 was ₹1,905 lakhs, nearly flat year-over-year but up 25% sequentially; H1FY25 revenue was ₹46,547 lakhs and net profit was ₹3,429 lakhs.

• EBITDA margin in India improved to nearly 18% due to volume growth and import restrictions from China; consolidated margin at 15.44% in Q2FY25.

• Capacity utilization at 80-85% in both India and Thailand.

• Basic and diluted EPS for H1FY25 (consolidated) was ₹6.75, compared to ₹6.29 for H1FY24.

Outlook and guidance

• Targeting 20% volume growth and 15-16% EBITDA margin for FY25, with Chennai plant expected to reach 2,000 tons/month run rate and 30,000 tons next year.

• Expects increased revenues from PLI scheme eligibility and improving exports to the USA and Europe.

• Sustained performance improvement and higher utilization expected for the rest of FY25.

• Export target of 30,000 tons from India over three years, with overall sales goal of 180,000 tons.

• Anticipates margin stability rather than significant improvement, prioritizing volume growth.