Rajratan Global Wire hits the roof after Q4 PAT gains 63% QoQ to Rs 15.20 cr

Rajratan Global Wire hit an upper circuit of 20% to Rs 388.55 after the company's consolidated net profit gained 63.27% to Rs 15.20 crore on a 15.14% increase in revenue to Rs 251.42 crore in Q4 FY25 over Q3 FY25.

However, on a year-on-year basis, the companys net profit fell by 24.94%, despite a 4.74% increase in total income in Q4 FY25 over Q4 FY24.

Profit before tax (PBT) in Q4 FY25 stood at Rs 20.06 crore, down 24.1% from Rs 26.43 crore recorded in the year-ago quarter.

EBITDA stood at Rs 33.33 crore in Q4 FY25, registering the de-growth of 3%, compared with Rs 34.41 crore in Q4 FY24. The EBITDA margin reduced to 13.26% in Q4 FY25, compared to 14.36% recorded in the corresponding quarter the previous year.

Total expenses jumped 8.3% YoY to Rs 231.92 crore in the fourth quarter of FY25. The cost of materials consumed stood at Rs 158.75 crore (up 5.16%), employee benefits expense was at Rs 11.37 crore (up 27.04% YoY), and finance costs were at Rs 7.48 crore (up 68.85% YoY) during the period under review.

Sunil Chordia, chairman, said, The last quarter saw 8590% capacity utilization at the Thailand and Pithampur plants, boosting overall profitability. Improved volumes and strategic market focus strengthened the Chennai unit. Higher realizations, increased sales to premium clients, limited exposure to low-end cycle tire makers, and stronger export and auto sector demand significantly enhanced profitability. Standalone profits, adjusted for Chennais initial losses, more than doubled over Q3FY25 and matched Q4FY24 levels.

The US tariff on our product remains unchanged, providing a fillip to our global ambition. During the last quarter, the Board of Directors approved the conversion of our low-value-added black wire capacity to higher-value-added wire rope, which will empower us to achieve similar profitability as our India bead wire business. Overall, we remain cautiously optimistic in a dynamic global scenario. We expect the scenario to play out positively for Rajratan, reinforcing our sustainable growth efforts. We look forward to commencing FY2025-26 on a positive note.

Meanwhile, the board has recommended a final dividend of Rs 2 per equity share, subject to shareholder approval at the upcoming AGM for FY 202425.

In a strategic move, the board also approved procurement of machinery at its Pithampur plant for the production of value-added wire rope. The initiative involves converting the existing 12,000 TPA capacity of black wire into 10,000 TPA of wire rope, enhancing the companys product offerings.

Rajratan Global Wire is engaged in the manufacturing of bead wire, a high-carbon steel wire utilized in the production of tires.

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