Rajratan Global Wire Limited, announced Q4 & FY22 Performance Highlights, Highest ever consolidated profit for a quarter and a year

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National, (INDIA): 21^st April 2022 (GNI):  Rajratan Global Wire Ltd (Bloomberg Code: RGW IN | BSE Code: 517522 | NSE Code: RAJRATAN) has announced its financial results for the third quarter and nine months ended December 2021.

Key Financial Performance highlights (Consolidated)

Particulars (Rs. lakhs)	Q4FY22	Q3FY22	Q4FY21	FY22	FY21
Sales Volumes (tonnes)	24,100	21,765	21,399	90,065	71,066
Revenue	24,757	22,183	18,365	89,286	54,654
EBITDA	4,755	4,734	3,242	18,159	9,211
PBT	4,025	4,003	2,557	15,264	6,625
PAT	3,703	3,277	2,321	12,433	5,313
EPS (Rs)	7.29	6.45	4.57	24.49	10.46
EBITDA Margin (%)	19.21	21.34	17.65	20.34	16.85
PAT Margin (%)	14.96	14.77	12.64	13.92	9.72

Major developments during the quarter

• Rajratan India: Pitampur, Indore, MP
  • One set of dust collector was installed; two more were ordered
  • Base level digitalisation was completed across a few section
• Rajratan India: Chennai, Tamil Nadu (Greenfield facility)
  • Land development and civil work was initiated on 15^th April 2022
  • Trial production is likely to commence before end of FY 2022-23
• Rajratan Thailand
  • Construction of the new warehouse was completed (storage capacity 5,000 MT)
  • Capacity expansion will complete in Q1 FY22-23
  • The Company received all major approvals for its Thailand plant.

Outlook for FY2022-23

• Rajratan Thailand

• The Company anticipates to widen its national and global footprints.
• This is likely to be initiated following capacity expansion in the Thailand plant.
• The Company plans to enhance wallet share of high profit customers.
• The expansion to 60,000 TPA is expected to become effective in Q2, FY 2022-23.
• Rajratan India
  • The Company will continue to debottleneck its patenting line manufacturing capacity (to be
  • completed in the first quarter of FY 2022-23).
  • The first construction phase of the Chennai plant is likely to be completed by the end of FY 2022-23.

The Board of Directors have approved a Dividend of Rs 2 per share (100% of FV of Rs 2) for the year subject to shareholder approval at the Annual General Meeting.

Commenting on the performance, Mr. Sunil Chordia, CMD, Rajratan Global Wire Ltd said “Financial year 2021-22 has been an eventful year for Rajratan as a whole. We continued our Outperformance from FY21 in this year on all fronts namely production and sales volume, capacity utilisation, revenue growth, margins & profitability, customer and employee satisfaction, employee productivity, plant productivity, new customer additions and increasing wallet share with all our customers. All these factors have allowed us to deliver our best performance ever in nearly all the quarters and the year as a whole. The coming year/s are going to be equally eventful with our upcoming expansion at Thailand and new greenfield facility at Chennai which will help increase our local market share as well as cater to exports. We continue to “Outperform” and work as a team to deliver value to our shareholders. In view of this strong performance, the Board of Directors have approved a dividend of Rs 2 per share for the year (100% of FV of Rs 2 per share), ” stated in the press release.

About Rajratan Global Wire Limited (Bloomberg Code: RGW IN | BSE Code: 517522 | NSE Code: RAJRATAN) is an India headquartered tyre ancillary, manufacturing bead wire, a critical component used in the manufacture of tyres. The company has well established & profitable operations based out of India and Thailand. The company deals with nearly every tyre company in India as its customer. Based out of Indore, Madhya Pradesh, the company has a production capacity of 72,000 TPA of wire (largest bead wire manufacturer) at a single location in India and 40,000 TPA at a single location in Thailand.

The company has embarked on an expansion in Thailand from 40,000 TPA to 60,000 TPA.

The company has started construction and civil work at the new greenfield plant at Sipcot Industria Park, Tamil Nadu near Chennai for 60,000 TPA to target domestic as well as export markets. This will be over and above the existing 72,000 TPA in India.

Vision: To become the leading and most preferred bead wire manufacturer and supplier to tyre companies in India and globally

Mission: # To manufacture and supply superior quality products at competitive prices and support it with excellent customer services # To imbibe and constantly develop a culture of excellence and improvement in every aspect of the business we are in # To ensure and enhance safe working conditions for all concerned

Marquee customers:India: Apollo tyres, ATG, BKT, Ceat, MRF, Bridgestone, JK Tyres, TVS tyres, Suprajit Engineering, Michelin amongst others

Thailand: Sentury Tire, Otani, Deestone, Sumitomo Tyres, Doublecoin, Continental, ZC Rubber, TBB Tiresr, Yokohama amongst others

Exports: Toyo Tyres, EP Tyres, Michelin Camso, Trelleborg, Dunlop, Nexen Tire amongst others.ends