Raj ratan Global Wire conducted the conference call for Q4 FY22
Here are the key concall highlights ๐งต๐
Here are the key concall highlights ๐งต๐
Business Updates:
โข Sales Volume, Customer addition, price realization all helped company to grow, while increase increase in capacity will increase the sales in future.
โข Thailand margins has came in par with India, & is running on optimum utilization.
โข Sales Volume, Customer addition, price realization all helped company to grow, while increase increase in capacity will increase the sales in future.
โข Thailand margins has came in par with India, & is running on optimum utilization.
Industry:
โข Bead Wire is still accepted in the market and there is no alternative available. While there is improvement happening in the product which is in line with co.
โข New entrance in the market will still take time to come upto such stage.
โข Bead Wire is still accepted in the market and there is no alternative available. While there is improvement happening in the product which is in line with co.
โข New entrance in the market will still take time to come upto such stage.
FY 23 Guidance:
โข Mgmt is bullish for next years, with expected target to increase the volume by 20-25%.
โข Topline is difficult to predict due to volatility in raw material prices.
โข FY 23 Thailand Volume Target: 35,000
โข Order book is currently 90% booked.
โข Mgmt is bullish for next years, with expected target to increase the volume by 20-25%.
โข Topline is difficult to predict due to volatility in raw material prices.
โข FY 23 Thailand Volume Target: 35,000
โข Order book is currently 90% booked.
India Market
โข India's market size if 1,20,000 Tones (including cycle tyre). Co. market share in auto tyre company is 45-48% market share.
Sales Mix
Bead Wire: 50,0000
Black Wire: 5,000
Target:
Bear Wire: 55,000
Black Wire: 10000
โข India's market size if 1,20,000 Tones (including cycle tyre). Co. market share in auto tyre company is 45-48% market share.
Sales Mix
Bead Wire: 50,0000
Black Wire: 5,000
Target:
Bear Wire: 55,000
Black Wire: 10000
Margins:
โข Margins have been increased despite volatility in steel price. RRGW has biggest bead wire line, which results in lower cost per tonne, improved quality and improve in product mix.
โข Co. has passed on the price to customer with the prices in level to Global prices.
โข Margins have been increased despite volatility in steel price. RRGW has biggest bead wire line, which results in lower cost per tonne, improved quality and improve in product mix.
โข Co. has passed on the price to customer with the prices in level to Global prices.
Thailand:
โข Thailand market is relatively stable for RRGW, due to domestic consumption and sales.
โข While export in tonnage will remain same, quite though Raj Ratan will now be focusing on higher margin customer.
โข Raj Ratan is the only player in Thailand for bead wire.
โข Thailand market is relatively stable for RRGW, due to domestic consumption and sales.
โข While export in tonnage will remain same, quite though Raj Ratan will now be focusing on higher margin customer.
โข Raj Ratan is the only player in Thailand for bead wire.
Capacity:
โข Co. will bring entire facility in Chennai plant with capacity of 60,000 (CAPEX of 300cr).
โข Mgmt expect utilization of 60,000 to come in near about 2-3 year.
โข This year CAPEX figure will be of 150cr & for further capex, company has taken 100cr of debt till now.
โข Co. will bring entire facility in Chennai plant with capacity of 60,000 (CAPEX of 300cr).
โข Mgmt expect utilization of 60,000 to come in near about 2-3 year.
โข This year CAPEX figure will be of 150cr & for further capex, company has taken 100cr of debt till now.
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