Rajratan Global Wire outperforms benchmark indices; rallies up to 5 per cent on healthy Q4FY22 results

Shreya Chaware
/ Categories: Trending, Mindshare
Rajratan Global Wire outperforms benchmark indices; rallies up to 5 per cent on healthy Q4FY22 results

On Thursday, the company announced its financial results for the fourth quarter of FY22.

On Friday, the markets opened on a weaker note with Sensex slipping beyond 500 points and Nifty declining over 160 points on the back of weak global cues.  The lowered sentiments were contributed by US Federal Reserve Chairman announcing that the central bank plans to move aggressively to control inflation and a 50-basis points rate hike will be observed on the table in May 2022. 

Amid the weak environment, the stock of Rajratan Global Wire is attracting investors’ attention by opening in green and zooming up to 4.83 per cent in the first hour of the trading session.  

On Thursday, the company announced its financial results for the fourth quarter of FY22.

The key financial performance highlights (consolidated) are :

Particulars (Rs lakh)  

Q4FY22  

Q3FY22  

Q4FY21  

FY22  

FY21  

Sales volumes (tonnes)  

24,100  

21,765  

21,399  

90,065  

71,066  

Revenue  

24,757  

22,183  

18,365  

89,286  

54,654  

EBITDA  

4,755  

4,734  

3,242  

18,159  

9,211  

PBT  

4,025  

4,003  

2,557  

15,264  

6,625  

PAT  

3,703  

3,277  

2,321  

12,433  

5,313  

EPS (Rs)  

7.29  

6.45  

4.57  

24.49  

10.46  

EBITDA Margin (per cent)  

19.21  

21.34  

17.65  

20.34  

16.85  

PAT Margin (per cent)  

14.96  

14.77  

12.64  

13.92  

9.72  

 

Major developments during the quarter   

  • Rajratan India: Pitampur, Indore, MP   
    • One set of dust collectors was installed; two more were ordered  
    • Base-level digitalisation was completed across a few sections  
  • Rajratan India: Chennai, Tamil Nadu (Greenfield facility)  
    • Land development and civil work were initiated on April 15, 2022  
    • Trial production is likely to commence before the end of FY 2022-23  
  • Rajratan Thailand   
    • Construction of the new warehouse was completed (storage capacity 5,000 MT)  
    • Capacity expansion will complete in Q1 FY22-23  
    • The company received all major approvals for its Thailand plant.  

Outlook for FY2022-23  

  • Rajratan Thailand  
    • The company anticipates widening its national and global footprints.  
    • This is likely to be initiated, following capacity expansion in the Thailand plant.  
    • The company plans to enhance the wallet share of high-profit customers.  
    • The expansion to 60,000 TPA is expected to become effective in Q2, FY 2022-23.  
  • Rajratan India  
    • The company will continue to debottleneck its patenting line manufacturing capacity (to be completed in the first quarter of FY 2022-23).  
    • The first construction phase of the Chennai plant is likely to be completed by the end of FY 2022-23.   

The board of directors has approved a dividend of Rs 2 per share (100 per cent of FV of Rs 2) for the year, subject to shareholder approval at the annual general meeting.  

Rajratan Global Wire Ltd is an India-headquartered tyre ancillary, manufacturing bead wire, a critical component used in the manufacturing of tyres. The company has well-established & profitable operations based out of India and Thailand. It deals with nearly every tyre company in India as its customer. 

On Friday at 10.12 am, its share was trading at Rs 626.25 per share, advancing 5 per cent on BSE. 

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