The shares of the Pipes & Tubes manufacturer gained up to 5.2 percent after the company executed a Shareholders Agreement with Saudi Electric Supply Company Limited, Kingdom of Saudi Arabia (KSA).
Price movement
With a market capitalization of Rs 18,678.12 crore, the shares of Ratnamani Metals & Tubes Ltd were trading at Rs 2,664.80 per share, increasing around 1.28 percent as compared to a previous closing price of Rs 2,631.10 apiece.
Reason for rise
The shares of Ratnamani Metals & Tubes Ltd have seen positive movement after a Joint Venture and Shareholders Agreement with Saudi Electric Supply Company Limited (SESCO) in Saudi Arabia. Under the agreement, RMTL will hold a 75 percent stake in the new JV company, while SESCO will hold the remaining 25 percent equity share.
Additionally, the purpose of the proposed JV Company is to provide critical tubing solutions to the consumers in the Kingdom of Saudi Arabia (KSA) / Gulf Co-operation Council (GCC) Countries and even to the rest of the world on an opportunities basis.
Financial Performance
The company reported an increase of 36 percent YoY in revenue from operations from Rs 971 crore in Q2FY25 to Rs 1,316 crore in Q3FY25. Their Net profits jumped by 34 percent YoY from Rs 99 Crore to Rs 133 crore over the same period.
Ratio analysis
The company’s critical ratios show that the return on equity increased from 19.60 percent in FY22-23 to 19.83 percent in FY23-24, while the return on capital employed increased from 24.82 percent to 25.52 percent. The net profit margin (NPM) for fiscal year 23-24 is 12.35 percent.
Company Analysis
Ratnamani Metals & Tubes, the company`s manufacturing facilities employ state-of-the-art technology to produce a wide range of stainless steel welded / seamless tubes & pipes and carbon steel welded pipes. The company is also in the business of Steel Tube and Pipes, the Sale of Power from windmills.
Written by Abhishek Singh
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