Any current/future new fundraising through debt or equity?

There is no specific mention of any current or future fundraising through debt or equity in the transcript. The company has planned capex of around INR 125 crores for the current year and INR 150-175 crores for the next year, funded presumably through internal accruals. The acquisition of Ravi Technoforge involved investment (INR 50 crores already spent), but it is indicated that this is separate from planned capex. Management highlights strong cash flows and suggests that the planned capex and investments are manageable within current resources. No explicit reference to raising funds via debt

Future growth expectations in sales/revenue/volumes?

Targeting revenue of INR 3,800 crores to INR 4,000 crores for FY '23, factoring in declining steel prices. Expect volume growth of 10% to 15% from FY '23 levels, driven by ramp-up of stainless steel (SS) and line pipe facilities. Stainless steel revenue share currently at 30%-35% (~INR 1,100-1,200 crores), expected to grow to INR 1,500-1,600 crores in next two years with better utilization of hot extrusion capacity. Bid book includes approximately INR 3,000 crores in water segment and INR 1,000-1,500 crores in domestic oil & gas segment, with international projects also under bidding.

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

Ratnamani aims for revenue of INR 3,800 - 4,000 crores in FY '23, factoring in steel price declines. Target volume growth of 10-15% in FY '23, driven by ramp-up of stainless steel and line pipe facilities. EBITDA margins guided at 15-17%, considering the blend of stainless steel and project pipes. Stainless steel segment revenue expected to grow from current INR 1,100-1,200 crores to INR 1,500-1,600 crores in 2 years with higher hot extrusion utilization. Ravi Technoforge acquisition aims to raise revenue to INR 500-600 crores in 2-3 years with EBITDA margin improvement from 14% to 16%

Current/ Expected Orderbook/ Pending Orders?

As of November 1, 2022, the order book stood at approximately INR 3,200 crores, up from INR 2,946 crores on October 1, 2022. Bid book details: - Water segment: Close to INR 3,000 crores under bidding. - Oil and gas segment (domestic): INR 1,000 to INR 1,500 crores under bidding. - Additional international projects are also under bidding. Carbon steel segment: Major projects like Sauni (2.5 lakh tons) and other Gujarat water projects totaling close to 300,000 tons (~INR 3,000 crores) are under consideration. Stainless steel export order book is at its highest, around INR 3,200 crores. Bid

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Ratnamani Metals & Tubes LtdQ3 FY22Industrial Products

Ratnamani Metals & Tubes Ltd Q3 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

→Targeting revenue of INR 3,800 crores to INR 4,000 crores for FY '23, factoring in declining steel prices.
→Expect volume growth of 10% to 15% from FY '23 levels, driven by ramp-up of stainless steel (SS) and line pipe facilities.
→Stainless steel revenue share currently at 30%-35% (~INR 1,100-1,200 crores), expected to grow to INR 1,500-1,600 crores in next two years with better utilization of hot extrusion capacity.
→Bid book includes approximately INR 3,000 crores in water segment and INR 1,000-1,500 crores in domestic oil & gas segment, with international projects also under bidding.
→Expects sustained and increased demand in stainless steel segment, reflected by a high order book (~INR 3,200 crores).
→Acquisition of Ravi Technoforge aims to scale revenues from INR 280 crores to INR 500-600 crores over next 2-3 years, with margin improvement.
→Continuous expansion and capacity utilization to maintain EBITDA margin guidance of 15%-17%.

Margin guidance

Category 3

→Ratnamani aims for revenue of INR 3,800 - 4,000 crores in FY '23, factoring in steel price declines.
→Target volume growth of 10-15% in FY '23, driven by ramp-up of stainless steel and line pipe facilities.
→EBITDA margins guided at 15-17%, considering the blend of stainless steel and project pipes.
→Stainless steel segment revenue expected to grow from current INR 1,100-1,200 crores to INR 1,500-1,600 crores in 2 years with higher hot extrusion utilization.
→Ravi Technoforge acquisition aims to raise revenue to INR 500-600 crores in 2-3 years with EBITDA margin improvement from 14% to 16%.
→Export orders and new projects from revived oil & gas and water segments expected to support growth.
→No margin erosion expected despite faster order book additions; margins stable across domestic and export markets.
→Ongoing capex of INR 125-175 crores annually over next 1-2 years to support expansion.

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Fundraise plans

→There is no specific mention of any current or future fundraising through debt or equity in the transcript.
→The company has planned capex of around INR 125 crores for the current year and INR 150-175 crores for the next year, funded presumably through internal accruals.
→The acquisition of Ravi Technoforge involved investment (INR 50 crores already spent), but it is indicated that this is separate from planned capex.
→Management highlights strong cash flows and suggests that the planned capex and investments are manageable within current resources.
→No explicit reference to raising funds via debt or equity was discussed during the call.

Order book

Yes

→As of November 1, 2022, the order book stood at approximately INR 3,200 crores, up from INR 2,946 crores on October 1, 2022.
→Bid book details:
→ - Water segment: Close to INR 3,000 crores under bidding.
→ - Oil and gas segment (domestic): INR 1,000 to INR 1,500 crores under bidding.
→ - Additional international projects are also under bidding.
→Carbon steel segment: Major projects like Sauni (2.5 lakh tons) and other Gujarat water projects totaling close to 300,000 tons (~INR 3,000 crores) are under consideration.
→Stainless steel export order book is at its highest, around INR 3,200 crores.
→Bid book and order inflow growth are attributed to leveraging geographic advantages and no margin hits in bidding.
→Pending bid book for carbon steel mainly involves large water and oil/gas projects in Gujarat, Rajasthan, and Punjab.

Capex plans

Yes

- Ongoing capex of INR 125 crores in current year and INR 150-175 crores in next year for expansions. - Two major expansions underway: • Stainless steel cold finishing facilities (~INR 180 crores announced earlier). • Carbon steel pipe manufacturing facility in eastern India (~INR 150 crores), with possible delay due to equipment being shifted to Rajasthan. - Investment in acquisition of majority stake in Ravi Technoforge Private Limited; INR 50 crores already infused for its expansion. - Ravi Technoforge plans revenue growth to INR 500-600 crores in 2-3 years with margin improvement by ~2%. - Expansion includes ramping up hot extrusion capacity utilization from current 20-30% to maximum in 3 years. - Future capex beyond INR 500 crores revenue at Ravi Technoforge will be required. - Organic and inorganic growth continues to be pursued, with focus on long-term sustainable value creation.

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