Rajratan Global Wire net profit up 122.62% in Q3 at INR 33 crore, Auto News, ET Auto


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Representational Image

New Delhi: Leading manufacturers of high carbon steel wire in India Rajratan Global Wire reported 122.62% growth in its consolidated net profit at INR 32.77 crore in the quarter ended December 2021 as against INR 14.72 crore during the previous quarter ended December 2020.

The company’s consolidated revenues in the quarter grew by 39.32% to INR 221.83 crore in the Q3 FY 2021-2022 as against INR 159.22 crore during the previous quarter ended December 2020.

According to Sunil Chordia, CMD, Rajratan Global Wire Ltd this quarter performance has continued to build up on the momentum of the company’s efforts to grow with sustainable profits. This has led to our nine-month performance surpassing annual performances of all previous years, he added.

“We continue to see robust demand for our products in India and Thailand, which has led us to expand our capacity in Thailand by 50% to 60,000 TPA and to work towards setting up a new greenfield capacity in Chennai for an additional 60,000 TPA,” he said.

Chordia further tyre demand continues to be good in domestic and international markets; all major tyre companies are looking to expand capacities in India. “We have also continued to focus on improving our overall ESG scores and production efficiencies in both our India and Thailand plants,” he added.

On the outlook, the company expects the automotive market to revive from February 2021-22 and normalize by Mar 2021-2022 with the domestic and export tyre demand robust. Indian tyre industry demand anticipated to grow by 13-15% in OEM segment and 7-9% in replacement market segment in FY22, the company added.

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 also signed a long term lease and received possession of land at Sipcot Industrial Park, Tamil Nadu to set up an additional 60,000 TPA plant near Chennai to target domestic as well as export markets. This will be over and above the existing 72,000 TPA in India.