Rathi Steel And Power Q1 Results: Revenue Reached Rs. 127.7 Cr; PAT Margin At 2.1%

One of India's rapidly expanding stainless steel producers, Rathi Steel and Power Limited, released its unaudited financial results for the first quarter that ended on June 30, 2024. Revenue for the first quarter of FY25 was Rs. 127.7 crore as opposed to Rs. 146.5 crore in the first quarter of FY24, representing a 12.83% YoY drop primarily due to subdued sales prices and a modest drop in volumes.

In Q1 FY25, EBITDA totalled Rs. 5.9 crore, with an EBITDA margin of 4.7%. The company posted a net profit of Rs. 2.7 crore in Q1FY25 up by 50% YoY from Rs 1.8 Cr in the year-ago quarter while PAT Margin stood at 2.1%.

With an emphasis on sustainable financial management, Rathi Steel and Power Limited re-established banking links in April 2024 through a fund-raiser with Kotak Mahindra after its debt-free status.

Mr. Rakesh Kumar, CFO of Rathi Steel and Power Ltd. said: "I am happy to say that we have entered the new financial year on a strong note, with performance in Q1 FY25 being in line with expectations, considering the present market conditions for the steel industry globally. Despite a relatively muted industry environment, Rathi has demonstrated resilience. Our top line for the quarter came in at Rs. 127.7 crores, while EBITDA and PAT were Rs. 5.9 crores and Rs. 2.7 crores, respectively."

"We achieved a major milestone this quarter upon the completion of our plant modernization project and initiating work on the cost optimization project that has been subsequently completed in August' 24. Synchronizing our steel casting and rolling process, we are being able to achieve phenomenal cost efficiencies. This also aligns with our endeavor to minimize our carbon footprint," he further added.

"Speaking of our product portfolio, evolving demands and new applications are driving the shift from traditional carbon steel products to stainless steel alternatives. With our capacities and infrastructure in place to further augment capacities at a much lesser capital expenditure cost vis-a-vis setting up of newer capacities, we are well positioned to capture opportunities," Rakesh Kumar stated.

"Despite sluggishness in the industry as of now, we are optimistic to leverage our strengths and continue growing, while delivering sustainable value to all stakeholders," he commented.

Rathi Steel and Power Limited was established in 1971 and manufactures and sells steel and steel-related products. The company specialises in stainless steel products, such as flats and wire rods, which are mostly utilised in residence, infrastructure, and engineering applications. Rathi has an installed capacity of 2,00,000 tonnes annually at a factory in Ghaziabad, Uttar Pradesh. In order to produce stainless steel billets, the company also runs a steel melting facility with an installed capacity of around 90,000 tonnes annually.