Capitaline

Results 21-Apr-22

Analysis

Rajratan Global Wire

Strong quarter

Rajratan Global Wire consolidated net sales increased 34.81% to Rs 247.57 crore in Q4FY22 compared to Q4FY21. Operating profit margin has jumped from 17.65% to 19.21%, leading to 46.67% rise in operating profit to Rs 47.55 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 60.56% to 61.02%. Employee cost decreased from 4.39% to 3.70%. Other expenses fell from 15.52% to 15.43%.

Other income rose 22.03% to Rs 0.72 crore. PBIDT rose 46.23% to Rs 48.27 crore. Provision for interest rose 4.95% to Rs 4.03 crore. PBDT rose 51.66% to Rs 44.24 crore. Provision for depreciation rose 10.83% to Rs 3.99 crore.

Profit before tax grew 57.41% to Rs 40.25 crore. Provision for tax was expense of Rs 3.22 crore, compared to Rs 2.36 crore. Effective tax rate was 8.00% compared to 9.23%.

Net profit attributable to owners of the company increased 59.54% to Rs 37.03 crore.

Promoters’ stake was 65.00% as of 31 March 2022 ,compared to 65.00% as of 31 March 2021.

Commenting on the performance, Mr. Sunil Chordia, CMD, Rajratan Global Wire Ltd said

“Financial year 2021-22 has been an eventful year for Rajratan as a whole. We continued our Outperformance from FY21 in this year on all fronts namely production and sales volume, capacity utilisation, revenue growth, margins & profitability, customer and employee satisfaction, employee productivity, plant productivity, new customer additions and increasing wallet share with all our customers. All these factors have allowed us to deliver our best performance ever in nearly all the quarters and the year as a whole. The coming year/s are going to be equally eventful with our upcoming expansion at Thailand and new greenfield facility at Chennai which will help increase our local market share as well as cater to exports. We continue to “Outperform” and work as a team to deliver value to our shareholders. In view of this strong performance, the Board of Directors have approved a dividend of Rs 2 per share for the year (100% of FV of Rs 2 per share).”

Full year results analysis

Net sales of Rajratan Global Wire has increased 63.37% to Rs 892.86 crore. Operating profit margin has jumped from 16.85% to 20.34%, leading to 97.14% rise in operating profit to Rs 181.59 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 59.95% to 59.55%. Purchase of finished goods cost fell from 1.25% to 1.13%. Employee cost decreased from 5.20% to 3.61%. Other expenses fell from 16.56% to 15.65%.

Other income rose 22.70% to Rs 2 crore. PBIDT rose 95.85% to Rs 183.59 crore. Provision for interest rose 15.24% to Rs 15.43 crore. Loan funds declined from Rs 142.29 crore as of 31 March 2021 to Rs 136.71 crore as of 31 March 2022. Inventories rose to Rs 81.91 crore as of 31 March 2022 from Rs 51.01 crore as of 31 March 2021. Sundry debtors were higher at Rs 180.95 crore as of 31 March 2022 compared to Rs 116.60 crore as of 31 March 2021. Cash and bank balance rose to Rs 8.44 crore as of 31 March 2022 from Rs 7.50 crore as of 31 March 2021.

PBDT rose 109.28% to Rs 168.16 crore. Provision for depreciation rose 10.07% to Rs 15.52 crore. Fixed assets increased to Rs 310.94 crore as of 31 March 2022 from Rs 250.85 crore as of 31 March 2021. Intangible assets stood at Rs 0.10 crore.

Profit before tax grew 130.40% to Rs 152.64 crore. Provision for tax was expense of Rs 28.31 crore, compared to Rs 13.12 crore. Effective tax rate was 18.55% compared to 19.80%.

Net profit attributable to owners of the company increased 134.01% to Rs 124.33 crore.

Equity capital stood at Rs 10.15 crore as of 31 March 2022 to Rs 10.15 crore as of 31 March 2021. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 65.00% as of 31 March 2022 ,compared to 65.00% as of 31 March 2021 .

Cash flow from operating activities increased to Rs 119.16 crore for year ended March 2022 from Rs 38.71 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 87.33 crore, compared to Rs 27.56 crore during the year ended March 2021.

The scrip is trading at Rs 596

Rajratan Global Wire : Consolidated Results
Particulars	2203 (03)	2103 (03)	Var.(%)	2203 (12)	2103 (12)	Var.(%)
Net Sales	247.57	183.65	35	892.86	546.54	14
OPM (%)	19.2	17.7		20.3	16.9
OP	47.55	32.42	47	181.59	92.11	35
Other Inc.	0.72	0.59	22	2.0	1.63	39
PBIDT	48.27	33.01	46	183.59	93.74	35
Interest	4.03	3.84	5	15.43	13.39	0
PBDT	44.24	29.17	52	168.16	80.35	44
Depreciation	3.99	3.6	11	15.52	14.1	17
PBT before EO	40.25	25.57	57	152.64	66.25	52
EO	0	0		0	0
PBT after EO	40.25	25.57	57	152.64	66.25
Taxation	3.22	2.36	36	28.31	13.12	23
PAT	37.03	23.21	60	124.33	53.13	61
EPS (Rs)*	#	#		24.5	10.5
Notes
* EPS is on current equity of Rs 10.15 crore, Face value of Rs 2, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Previous News

Rajratan Global Wire consolidated net profit declines 10.55% in the December 2023 quarter
( Results - Announcements 20-Jan-24 14:33 )

Rajratan Global Wire to convene board meeting
( Corporate News - 15-Apr-24 17:49 )

Board of Rajratan Global Wire to consider sub-division of shares
( Corporate News - 11-Jan-22 14:48 )

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( Results - Announcements 21-Jul-21 14:03 )

Rajratan Global Wire fixes record date for interim dividend
( Market Beat - Reports 29-Feb-20 11:54 )

Rajratan Global Wire announces board meeting date
( Corporate News - 14-Jul-21 13:54 )

Board of Rajratan Global Wire recommends Final Dividend
( Corporate News - 10-May-19 15:25 )

Rajratan Global Wire to table results
( Corporate News - 12-Oct-19 14:35 )

Rajratan Global Wire approves Scheme of Merger
( Corporate News - 03-Nov-16 17:24 )

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( Results - Announcements 21-Jul-22 16:33 )

Rajratan Global Wire to hold board meeting
( Corporate News - 15-May-14 15:38 )