RAMA STEEL A MULTI BAGGER IN THE MAKINGRama Steel Tubes Limited has demonstrated notable developments recently:
Sales Growth: In Q2 FY25, the company reported a sales volume of 50,921.67 tons, marking a 42.32% year-over-year increase and a 36.28% rise from the previous quarter.
Green Energy Initiatives: Rama Steel Tubes has entered the renewable energy sector by partnering with Onix Renewable Ltd. to supply steel structures and single-axis trackers for solar projects. Additionally, the company incorporated a wholly-owned subsidiary, ONIX IPP Pvt. Ltd., to focus on green energy ventures.
Market Performance: The stock has experienced significant movements, including a 38% surge over three sessions in September 2024, adding approximately ₹500 crore to its market capitalization.
Financial performance for the second quarter of fiscal year 2025 (Q2 FY25) is as follows:
1)Sales Volume: The company reported a sales volume of 50,921.67 tons in Q2 FY25, a 42.32% increase compared to 35,780.33 tons in Q2 FY24.
2)Revenue: The revenue for Q2 FY25 stood at ₹263.05 crore, up 29.37% from ₹203.33 crore in the same quarter the previous year.
Rama Steel Tubes Limited has been actively reducing its debt levels over recent years, reflecting a strategic move to strengthen its financial health. Here's a detailed overview:
1)Total Debt:
As of March 2024, the company's total debt stood at ₹144 crore, a 25.12% reduction from ₹193 crore in March 2023.
2) Debt-to-Equity Ratio:
The debt-to-equity ratio decreased to 0.43 in March 2024 from 0.77 in March 2023, indicating a significant reduction in leverage.
3)Net Debt-to-EBITDA Ratio:
The company has improved its Net Debt-to-EBITDA ratio over the years, showcasing better debt management relative to earnings.
These metrics highlight Rama Steel Tubes Limited's commitment to reducing debt and enhancing financial stability.
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