Rajratan Global Wire (517522) Q4 03/04 earnings summary

Executive summary

• FY2003-04 sales turnover rose 18% to ₹70.90 crore from ₹60.30 crore; PBDT increased 20% to ₹6.15 crore.

• Tyre bead wire sales reached 13,650 MT, up 21% YoY; installed capacity expanded from 15,000 MT to 20,000 MT.

• First wire manufacturer in India to receive ISO/TS 16949:2002 certification from TÜV Rheinland.

Financial highlights

• Gross sales were ₹70.88 crore vs ₹60.30 crore; net sales excluding excise duty were ₹62.20 crore vs ₹52.64 crore.

• PBT rose to ₹4.97 crore from ₹4.24 crore; PAT after deferred tax was ₹3.53 crore vs ₹3.04 crore.

• Proposed dividend increased to 18% (₹1.80/share) from 15% (₹1.50/share).

Outlook and guidance

• Directors expected strong growth in turnover and bottom line as expanded capacity began contributing additional production.

• Steel price and availability volatility made exact price levels difficult to forecast; raw-material arrangements and capacity to import were in place.

• No long-term customer price contracts planned, enabling raw-material cost increases to be passed into finished-goods pricing.