Rama Steel Tubes, a multibagger stock from the BSE SmallCap index, has announced its earnings for the April-June quarter of financial year 2023-24. Mainly engaged in the manufacturing iron and steel products, the firm has reported 30 per cent increase in its revenue led by increased demand in the domestic market.
The revenue from operations came in at Rs 312.52 crore in the quarter as against Rs 240 crore reported in the corresponding quarter of the last year.
The company in a statement on BSE said that the growth was driven by robust demand amid rise in economic activities which was reﬂected through the sales volume growth at 62 per cent to 48,437 metric tonnes.
Its profit after tax in the first quarter grew by 76 per cent to Rs 7.46 crore as compared to Rs 4.23 crore that it had posted in the year-ago period.
"The numbers were led by increasing demand for steel tubes and pipes across various industries," the company said in a statement.
"However, the downward pressure on steel prices, and increase in supply of Chinese steel in India did act as a bump in the road," it added. The company is hopeful that steel prices will stabilize by the end of FY24.
Additionally, it also saw a bulk deal during the quarter a foreign institutional investor (FII). As per bulk deal data available on BSE, Societe Generale bought 60,00,000 equity shares of the company at an average price of Rs 38.17 per share, totalling to Rs 22.90 crore. Societe Generale is one of the leading European financial services groups.
Besides, it also entered into a partnership with JSW Steel for procurement of hot rolled coils (HRC) used in manufacturing of steel tubes, pipes and other industrial products.
Shares of Rama Steel Tubes have given return of multibagger returns of over 250 per cent in the past two years to its investors.