Ratnamani Metals & Tubes (520111) Q4 92/93 earnings summary

Executive summary

• FY93 revenue reached Rs 2,609.00 lakh, while profit after tax rose to Rs 102.98 lakh from Rs 92.93 lakh; profit before tax was nearly flat at Rs 151.98 lakh versus Rs 152.43 lakh.

• Export turnover increased to Rs 38.13 lakh from Rs 3.48 lakh; management cited a healthy domestic and export order book and expected improved current-year operations.

Financial highlights

• Sales and other income was Rs 2,609.00 lakh versus Rs 2,460.57 lakh; sales realization increased 4% YoY, supported by lower wastage from process improvements.

• Profit after tax was Rs 102.98 lakh versus Rs 92.93 lakh; proposed dividend was Rs 2 per share, unchanged, absorbing Rs 39.05 lakh.

• Interest and bank charges rose to Rs 122.63 lakh from Rs 99.71 lakh, attributed to higher interest rates; directors said this burden reduced profit before depreciation and tax.

Outlook and guidance

• Orders on hand were Rs 1,753.62 lakh for domestic supply and Rs 854.49 lakh for exports; management expected profitable use of capacity expanded by Pilger Mills and significant operational improvement.

• A stainless-steel seamless mother pipe and cold-drawn tube project was planned as a 100% export-oriented unit; government approvals were sought and financing discussions with ICICI were underway.