Ratnamani Metals and Tubes - Q2FY21 First Cut - ICICI Securities

(CMP: Rs. 1249, MCap: Rs. 5836 crore)

Ratnamani Metals and Tubes (RMTL) reported subdued performance for Q2FY21, wherein topline , EBITDA and PAT came in lower than our estimate. Muted performance was on the back of lower than expected sales volumes.

Q2FY21 Earnings Summary

- For Q2FY21, net income from operations stood at Rs. 577 crore (down 5% YoY, flattish QoQ), lower than our estimate of Rs. 617 crore. Carbon steel (CS) sales volume came in at 55989 tonnes (down 4% QoQ, up 10% YoY), lower than our estimate of 61250 tonnes. Stainless steel (SS) sales volume was at 5256 tonnes (down 10% YoY, up 31% QoQ), lower than our estimate of 5775 tonnes

- EBITDA margin came in at 14.2% (12.7% in Q1FY21 and 19.1% in Q2FY20), lower than our estimate of 14.8%. The subsequent EBITDA came in at Rs. 82 crore (down 30% YoY, up 11% QoQ), lower than our estimate of Rs. 91 crore

- Ensuing PAT came in at Rs. 57 crore, lower than our estimate of Rs. 65 crore

We would be coming out with the detailed report post the conference call.

Shares of RATNAMANI METALS & TUBES LTD. was last trading in BSE at Rs.1249 as compared to the previous close of Rs. 1245.15. The total number of shares traded during the day was 785 in over 202 trades.

The stock hit an intraday high of Rs. 1257 and intraday low of 1243.05. The net turnover during the day was Rs. 981745.

Source : Equity Bulls

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