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

Executive summary

• Achieved strong volume growth: India up 11-23% and Thailand up 25-32% year-over-year, with total wire sales growing 10-16%.

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

• Q2FY25 performance improved after sluggish quarters, driven by bead wire demand, new plant commercialization, and higher utilization rates.

• 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.

• Strategic push to increase exports, with approvals and trial lots underway for major customers in Europe and North America.

Financial highlights

• Consolidated revenue from operations for Q2 FY25 was ₹24,533 lakhs, up 14% year-over-year; H1FY25 revenue was ₹46,547 lakhs.

• EBITDA increased 12% year-over-year to ₹3,789 lakhs in Q2FY25, with margin at 15.44% and sequential improvement of 204 bps.

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

• India operations reported improved EBITDA margin close to 18%, while Thailand maintained 11-12%.

• Chennai facility sales reached 1,000 tons in Q2; target for the year is 14,000 tons to qualify for PLI benefits.

Outlook and guidance

• Confident in achieving 20% consolidated volume growth and maintaining 15-16% EBITDA margin for FY25.

• Chennai plant expected to ramp up to 2,000 tons/month, aiming for 30,000 tons next year.

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

• Sustained performance improvement expected for the rest of FY25.

• The Chennai plant is expected to enhance capacity and operational efficiency as assets become fully operational.