Ratnamani Metals & Tubes (520111) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 standalone revenue was INR 917 crores and EBITDA was INR 168 crores; H1 revenue was INR 2,039 crores with EBITDA of INR 335 crores.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were reviewed and approved by the Board on November 14, 2024.

• Independent auditors issued unqualified limited review reports for both standalone and consolidated results, confirming compliance with Indian Accounting Standards and SEBI regulations.

• EBITDA margin expanded in Q2, supported by a better export product mix and lower input prices.

• Order backlog as of 1st November stood at over INR 2,900 crores.

Financial highlights

• Consolidated revenue from operations for Q2 FY25 was ₹97,132.91 lakh, down from ₹1,13,120.55 lakh in Q1 FY25 and ₹1,18,369.67 lakh in Q2 FY24.

• Consolidated net profit for Q2 FY25 was ₹9,935.35 lakh, compared to ₹10,588.15 lakh in Q1 FY25 and ₹13,183.85 lakh in Q2 FY24.

• Ravi Technoforge subsidiary posted INR 138 crores revenue, 11% YoY growth, with EBITDA margin above 10%.

• Realization decrease in Q2 was approximately 15% YoY, mainly due to lower steel prices.

• Inventory of finished goods and WIP increased to INR 120 crores, with about 50% attributed to water pipes.

Outlook and guidance

• Annual revenue guidance maintained at INR 5,000–5,200 crores, with 8–10% growth expected.

• EBITDA margin guidance remains at 16–18% for the year.

• Export demand is strong, with order book now split 50/50 between domestic and export markets.

• The company increased its stake in Ravi Technoforge Private Limited to 80.017% during the quarter.

• Water segment expected to recover in the next two quarters as monsoon impact fades.