The shares of the leading manufacturer and supplier of winding wires in the electrical equipment industry gained 4% to ₹402.50 per share after the company board approved an investment of ₹200 crore to expand their copper tube manufacturing facility.
At 2:10 p.m., Ram Ratna Wires Ltd shares were trading at ₹ 395.50, indicating a 2.25 percent rise from the closing price of the prior session on the National Stock Exchange.
According to an exchange filing by the company, on May 14, 2024, the board approved a new additional line of business for the facility at the Bhiwadi plant. This new line will focus on producing DHP Copper Tube and related products, alongside the existing product range, with a total investment of approximately ₹ 200 Crores.
The company anticipates commencing production of these new products by the second quarter of the fiscal year 2024-25.
Ram Ratna Wires Limited specializes in the manufacture of winding wires, predominantly enamelled copper wires.
Its product range includes enamelled copper wire and strips, enamelled aluminium wires and strips, as well as submersible winding wires. These products find application in various industries such as transmission and distribution, automobiles, capital goods manufacturing, consumer electricals, batteries, and generators.
The company’s revenue saw an 11 percent year-on-year increase, climbing from ₹.724 crore in Q4FY23 to ₹. 803 crore in Q4FY24. However, during the same period, net profit experienced an increase of 18 percent, rising from ₹ 16 crore to ₹ 19 crore.
Ram Ratna Wires Ltd shares have shown remarkable growth, rising by 47% in the last six months and 101% in the last 12 months.
With regards to revenue distribution, the company derives 92% from domestic sales and 8% from exports. Based on revenue split, enamelled wires and strips contribute 88%, while copper tubes and pipes make up the remaining 12%.
The Company serves a diverse clientele, including prominent private sector Indian and multinational corporations such as Schneider Electric, Siemens Ltd, C G Power, C&S Electric Ltd, and Havells India Ltd.
The company operates three manufacturing units situated in Silvassa, Daman, and Diu. Enamelled copper wire constitutes roughly 70% of total production, with the remaining 30% attributed to other products such as enamelled copper strips.
Written by Omkar Chitnis
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