Ratnamani Metal and Tubes - Q4FY21 First Cut - ICICI Direct

(CMP - Rs. 1948; MCap - Rs. 9104 crore)

Ratnamani Metal and Tubes (RMTL) reported operationally healthy performance for Q4FY21, wherein robust EBITDA margins was the key highlight of the quarter. EBITDA margin for Q4FY21 stood at 22.8% as compared to 18.3% in Q3FY21 and 15.7% in Q4FY20, notably higher than our estimate of 15.7% Overall RMTL's performance was higher than our estimate on all fronts.

Q4FY21 Earnings Summary

For Q4FY21, RMTL reported a net income from operations of Rs. 696.1 crore (up 57% QoQ), higher than our estimate of Rs. 664 crore. Stainless sales volume stood at 5792 tonnes (up 16% QoQ), higher than our estimate 5750 tonnes, while carbon steel sales volume stood at 63511 tonnes (up 93% QoQ), higher than our estimate of 47500 tonnes

EBITDA came in at Rs. 158.8 crore (up 96% QoQ, 64% YoY), higher than our estimate of Rs. 104 crore. EBITDA margin for Q4FY21 stood at 22.8% as compared to 18.3% in Q3FY21 and 15.7%in Q4FY20, notably higher than our estimate of 15.7%

Ensuing PAT for Q4FY21 stood at Rs. 109.4 crore (up 82% QoQ, 62% YoY), higher than our estimate of Rs. 75 crore

RMTL's order book has also improved on a sequential basis. RMTL's order book as on 1st May, 2021 stood at Rs. 1498 crore (Rs. 1359 crore as on January 1, 2021). Stainless steel (SS) order book stood at Rs. 330 crore (Rs. 347 crore as on January 1, 2021), while carbon steel (CS) orders stood at Rs. 1168 crore (Rs. 1012 crore as on January 1, 2021). In terms of domestic and exports mix, domestic orders stood at Rs. 1357 crore while export orders stood at Rs. 141 crore. Of the Rs. 1357 crore domestic order book, Rs. 251 crore is in the SS segment while balance Rs. 1106 crore is in the CS segment. Of the Rs. 141 crore export order book: Rs. 79 crore is in the SS segment while the balance Rs. 62 crore is in the CS segment

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

Shares of RATNAMANI METALS & TUBES LTD. was last trading in BSE at Rs.2006.1 as compared to the previous close of Rs. 1948.2. The total number of shares traded during the day was 15526 in over 2422 trades.

The stock hit an intraday high of Rs. 2121 and intraday low of 1930.05. The net turnover during the day was Rs. 31148046.

Source : Equity Bulls

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