Rajratan Global Wire (517522) Q4 24/25 earnings summary

Executive summary

• Achieved strong recovery in Q4 FY25, driven by improved capacity utilization at Chennai and robust export performance after two years of groundwork.

• Pithampur and Thailand plants operated at 85%-90% capacity, supporting profitability and volume growth.

• Higher realizations, increased sales to marquee customers, and reduced exposure to low-margin cycle tyre market improved profitability.

• Board approved conversion of black wire capacity to higher-value wire rope, enhancing the product portfolio.

• Audited standalone and consolidated financial results for FY25 were approved, with unmodified audit opinions.

Financial highlights

• Q4FY25 consolidated revenue rose 15% sequentially and 5% year-over-year to Rs 25,142 lakhs.

• Consolidated revenue for FY25 was Rs. 93,693 lakhs, up from Rs. 89,385 lakhs in FY24.

• Consolidated net profit for FY25 was Rs. 5,880 lakhs, compared to Rs. 7,184 lakhs in FY24.

• EBITDA margin improved 124 bps sequentially to 13.26% in Q4FY25, but declined 110 bps year-over-year.

• Chennai facility incurred a loss of INR 11-12 crores, with 10 crores capitalized as trial run losses; losses expected to cease as volumes ramp up.

Outlook and guidance

• Projecting at least 15% volume growth for FY26, mainly from Chennai ramp-up and increased exports.

• Expect higher sales volumes, better fixed cost amortization, and increased Chennai plant utilization in Q1 FY26.

• Strategic investment of approximately Rs. 50 crores (funded by debt and internal accruals) to add value to existing capacity and launch a new product line.

• EBITDA margin expected to improve slightly due to better capacity utilization, though absolute EBITDA growth will be moderate.

• Initiatives underway for TPM excellence at Chennai and Thailand, aiming for Deming Award in 5 years.