Rama Steel Tubes announces excellent Q1 results

New Delhi [India], Sept 12 (ANI-NewsVoir): BSE, NSE listed 100 percent debt free Rama Steel Tubes Ltd. engaged into manufacture of steel pipes and tubes announced excellent results for Q1 of FY18 with topline growth by 11 percent year-on-year (YoY) to Rs.715 million. EBITDA grew by 23 percent YoY to Rs. 67 million while EBITDA margins expanded by 90 bps to 9.2 percent.

The company has two state-of-the-art manufacturing facilities in Sahibabad and Khopoli with a total installed capacity of 1,32,000 MT. Rama, under its strong brand of 'TTT Rama' offers a wide product suite, with presence in key sectors and catering to diverse applications in sectors of automobiles, infrastructure, real estate and furniture amongst others. The company has robust exports, which currently contribute to -75 percent of revenues.

According to Richi Bansal, CEO, the current order book stands at around Rs. 50 crore, adding that the company is more orders from the export market.

According to Buy report released by a leading Broking House, the xompany with focus on manufacturing, expanding capacities, shift in product mix and positive operating cash flows, going forward, the stock has great potential for long term investors. Focus on expansion and value added products to drive growth and Margins. With commencement of production of additional capacities (from two new plants) along with higher capacity utilisation rates, the firm believes that margin expansion will continue.

As the management focuses on the value added products like pre-galvanised tubes along with strategic plan of increasing the capacity, number of dealers', distributors network will not only improve top-line but will also aide improve overall margins of the Company.

RST saw a significant jump in sales volumes, despite demonetisation, aided by Khopoli's volume. Sales volume will grow following the additional capacity and expect realisations to improve further as demand from the construction sector seems witnessing a marginal improvement backed by the strengthening economy and favourable raw material conditions. (ANI-NewsVoir)

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