Ratnamani Metals & Tubes Limited — Investor Meet, 21-05-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Ratnamani Metals & Tubes has announced a board meeting to discuss the financial results for the quarter and half-year.

Ratnamani reported record Q4 sales of Rs. 1,575 Cr (up 11% YoY) and FY25 consolidated revenue of Rs. 5,186 Cr, driven by higher-value-added products lifting gross margin by 3% QoQ and EBITDA margin by 2%. Standalone EBITDA edged down 1%, net debt hit zero, supporting a Rs. 14/share dividend. Subsidiaries performed well; Ravi Technoforge grew 11% YoY, Finow clocks Rs. 56 Cr turnover with a Rs. 600+ Cr order book backed by capacity expansion. A Saudi JV for a stainless steel plant is in progress to enhance regional reach.

Order book stands at ~Rs. 2,100 Cr (55% exports), with 5–10% volume growth guided for FY26. Capex of Rs. 200–250 Cr planned mainly for subsidiaries, Odisha plant expansion, and stainless cold finishing ramp-up. Margins face pressure from a larger low-realization water segment (now 15–18% of revenue) and competition in pierced stainless steel tubes. Focus remains on differentiated grades serving nuclear, defense, aerospace with new geographies eyed.

Utilization: stainless steel ~60%, carbon steel spiral/ERW ~55%, LSAW ~50%. Working capital rose due to inventory buildup but should normalize. Long-term volume growth target ~10% annually in standalone pipes, with subsidiaries set for rapid scale-up. Cold finishing facility aims for ~16–18% EBITDA, spooling targets ~20% EBITDA at Rs. 350+ Cr revenue. Backward integration into stainless/alloy steel under study for raw material security and advanced grades.

The tone is confident, driven by value-added product growth, expansions, and geographic diversification, while innovating to address margin pressures and optimize product mix.