Ratnamani Metals & Tubes Ltd

- Stainless steel cold finishing capacity expansion of 1,200 metric tons initially, scaling up to 1,500 metric tons, expected completion by December this calendar year or January next year, with a capex of around INR170-180 crores. - Carbon steel expansion involving land acquisition underway; major capex will start in the first quarter of next financial year. - Capex guidance for FY '24 around INR150-200 crores, with plans for further growth beyond FY '25. - Odisha project capex is minimal at present; major spending will be on land and lease rent, with plant capex to follow later. - Ravi Technoforge, subsidiary, ongoing capex for capacity/process expansion and automation, expected completion by September/October 2023. - Enabling resolution for an additional INR500 crores capex being considered for future growth plans; no immediate plans but under preparation. - Solar power project of 15 megawatts commissioned to reduce power costs and support sustainability.

- FY’24 revenue target: INR 5,000 crores ±5%, up from ~INR 4,500 crores in FY’23. - Volume for FY’23: ~304,000 tons; capacity utilization between 60%-80% for most products except newly expanded units (~30%). - Volume growth: ~10% expected for FY’24, despite some softness in carbon steel line pipe demand. - Utilization for new extrusion capacity expected to improve from 30% in FY’23 to 50-60% going forward. - Cold finishing capacity expansion adding 1,200-1,500 tons, focusing on high-value stainless steel small-diameter tubes. - Export growth targets positive, with stainless steel exports forming a strong base (~50% direct, 20% indirect turnover). - Substantial focus on high-margin products (blended EBITDA margins projected around 15%-18%). - Capacity can support up to INR 6,000 crores top-line with current infrastructure, subject to demand.

- Revenue is projected to grow from approx. INR4,450 crores in FY23 to around INR5,000 crores in FY24, with a ±5% variance. - The company expects volume growth driven by better utilization and development of new specialized product grades. - EBITDA margins are forecasted to remain stable in the range of 15%-18%, with some quarters seeing 16%-18% due to a favorable product mix. - Operating profits showed strong growth in recent quarters, with INR300 crores in Q4 FY23 versus INR200 crores in Q3 FY23, underpinned by better product mix and utilization. - Subsidiary (Ravi Technoforge) is expected to grow revenues by 15%-20% with a margin expansion of 200 basis points in FY24. - Overall, the company targets sustainable growth in earnings with optimized utilization, product mix, and new capacity expansions.

- As of April 1st, the order book was approximately INR 2,600 crores. - Export orders accounted for around INR 557 crores out of the total INR 2,440 crores order book reported as of May 1st. - Orders mainly come from the oil and gas sector, process industry, power sector, and water segment. - There is a six-month backlog based on an expected revenue of INR 5,000 crores. - The company sees good demand in domestic and international water segments. - While the order visibility in oil and gas transmission lines in India looks muted, business traction in stainless steel pipes and tubes remains encouraging. - The management expects continued order intake with a potential to reach around INR 5,000 crores revenue next year, supported by a mix of domestic and export orders.

- The company has taken an enabling resolution to raise approximately INR 500 crores, primarily to support its next growth plan. - Currently, there is no concrete plan for immediate capex-related fundraising, but the team is actively working on future projects, indicating potential capital requirements. - The enabling resolution allows for tie-ups with debt, including bonds and other instruments, complying with regulatory requirements. - As of the latest update, the net debt level stands around INR 140 crores, consisting entirely of long-term borrowings. - No short-term borrowing is currently reported. - Major outgoing capex for new projects like the Odisha project and stainless steel cold drawing facility will commence later, suggesting potential future fundraising needs.