Any current/future new fundraising through debt or equity?

No explicit mention of any current or planned new fundraising through debt or equity in the transcript. The company’s net debt position as of June 2022 is modest, with debt around Rs. 150-160 crores and net debt approximately Rs. 60-70 crores. The company maintains a positive net cash position but not significantly high due to working capital demands. Maintenance CAPEX is around Rs. 40 crores and is accounted for in the P&L, with no indication of major new capital raising needs. Ongoing investments include expansion projects (SS and HSAW mills), which are progressing but no mention of raising

Any current/future capex/capital investment/strategic investment?

Additional CAPEX announced for Stainless Steel (SS) and Helical Submerged Arc Welded (HSAW) mill at a new location. Work on SS is ongoing and ground preparation for HSAW is in progress; updates expected in 3 to 6 months (Page 9). New hot extrusion facility commissioned at Indrad replacing older facility at Kutch, with reduced import dependency (Page 12, 13). Maintenance CAPEX around Rs. 40 Cr annually, expensed through Profit & Loss (Page 13). Focus on high value-added and import substitute products, leveraging new capacities (Page 14). Stainless Steel capacity utilization expected to be large

Future growth expectations in sales/revenue/volumes?

The company targets a revenue growth of 15-20% for the financial year, maintaining a growth trajectory of around 20% as a long-term expectation. Volume growth in carbon steel is expected to be significant, approximately 25-30%, due to declining prices, but stainless steel volume growth will be modest as the focus is on higher value-added products rather than tonnage. Utilization rates are expected to remain better supported by good monsoons and stable demand, with no major signs of demand destruction. Growth drivers include expansion in petrochemical plants, refinery capacity expansions,

Future growth expectations in earnings/operating earnings/profits/EPS?

Ratnamani Metals & Tubes Limited targets revenue growth of 15-20% for FY23, maintained despite market volatility. EBITDA margins are expected in the 16-18% range, with quarter-on-quarter fluctuations possible due to product mix and raw material costs. Utilization rates are expected to improve due to price corrections and good monsoons, supporting steady demand without major destruction. The company anticipates maintaining a 20% growth trajectory over the longer term. Growth is driven by strong order book (Rs. 2,345 crores as of August 1, 2022) across oil & gas, water, and process industries. F

Current/ Expected Orderbook/ Pending Orders?

Total order book as of August 1, 2022, stands at Rs. 2,345 crores, including Rs. 455 crores from exports. Majority of the order book is from oil and gas and process industries; water segment orders are currently minimal. Ongoing bids include approximately: - 250,000 tons in Gujarat water projects - 110,000-120,000 tons in Rajasthan water projects - 200,000-400,000 tons in MP water projects (some figures vary slightly in discussions) - 100,000 tons in oil & gas projects with tender results awaited - 20,000-25,000 tons for City Gas Distribution (CGD) projects, expecting t

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Ratnamani Metals & Tubes LtdQ2 FY22Industrial Products

Ratnamani Metals & Tubes Ltd Q2 FY22 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹2,647P/E: 38.5Market Cap: ₹18.9K CrSector: Industrial Products

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→The company targets a revenue growth of 15-20% for the financial year, maintaining a growth trajectory of around 20% as a long-term expectation.
→Volume growth in carbon steel is expected to be significant, approximately 25-30%, due to declining prices, but stainless steel volume growth will be modest as the focus is on higher value-added products rather than tonnage.
→Utilization rates are expected to remain better supported by good monsoons and stable demand, with no major signs of demand destruction.
→Growth drivers include expansion in petrochemical plants, refinery capacity expansions, and demand from water projects in Gujarat, Rajasthan, and Madhya Pradesh.
→New opportunities in CGD (City Gas Distribution) projects and oil & gas sectors also contribute to growth prospects.
→The company prioritizes high-value and import-substitute stainless steel products to maintain margins despite moderate volume increases.

Margin guidance

Category 3

→Ratnamani Metals & Tubes Limited targets revenue growth of 15-20% for FY23, maintained despite market volatility.
→EBITDA margins are expected in the 16-18% range, with quarter-on-quarter fluctuations possible due to product mix and raw material costs.
→Utilization rates are expected to improve due to price corrections and good monsoons, supporting steady demand without major destruction.
→The company anticipates maintaining a 20% growth trajectory over the longer term.
→Growth is driven by strong order book (Rs. 2,345 crores as of August 1, 2022) across oil & gas, water, and process industries.
→Focus on higher value-added stainless steel products is expected to boost margin quality rather than volume growth.
→Maintenance capex remains controlled (~Rs. 40 crores) with most investments in capacity expansion and import substitution products.
→Management confident of sustained earnings growth despite geopolitical and raw material cost challenges.

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Fundraise plans

→No explicit mention of any current or planned new fundraising through debt or equity in the transcript.
→The company’s net debt position as of June 2022 is modest, with debt around Rs. 150-160 crores and net debt approximately Rs. 60-70 crores.
→The company maintains a positive net cash position but not significantly high due to working capital demands.
→Maintenance CAPEX is around Rs. 40 crores and is accounted for in the P&L, with no indication of major new capital raising needs.
→Ongoing investments include expansion projects (SS and HSAW mills), which are progressing but no mention of raising funds via equity or fresh debt for these.

Order book

Yes

→Total order book as of August 1, 2022, stands at Rs. 2,345 crores, including Rs. 455 crores from exports.
→Majority of the order book is from oil and gas and process industries; water segment orders are currently minimal.
→Ongoing bids include approximately:
→ - 250,000 tons in Gujarat water projects
→ - 110,000-120,000 tons in Rajasthan water projects
→ - 200,000-400,000 tons in MP water projects (some figures vary slightly in discussions)
→ - 100,000 tons in oil & gas projects with tender results awaited
→ - 20,000-25,000 tons for City Gas Distribution (CGD) projects, expecting to secure 10,000-15,000 tons in ERW pipes
→New CGD rounds are expected in 5-6 months; existing awarded areas are under CAPEX planning.
→ERW orders are booked until November, with expected booking through March.

Capex plans

Yes

→Additional CAPEX announced for Stainless Steel (SS) and Helical Submerged Arc Welded (HSAW) mill at a new location. Work on SS is ongoing and ground preparation for HSAW is in progress; updates expected in 3 to 6 months (Page 9).
→New hot extrusion facility commissioned at Indrad replacing older facility at Kutch, with reduced import dependency (Page 12, 13).
→Maintenance CAPEX around Rs. 40 Cr annually, expensed through Profit & Loss (Page 13).
→Focus on high value-added and import substitute products, leveraging new capacities (Page 14).
→Stainless Steel capacity utilization expected to be largely captive with some availability for external sales (Page 9).
→No major change expected in CAPEX due to oil prices; emphasis on petrochemical expansion and related demand (Page 8).

How does Ratnamani Metals & Tubes Ltd rank vs peers in Industrial Products?

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