Rajratan Global Wire Limited Earnings Conference Call Summary
Overview
• Date of Call: April 22, 2024
• Financial Year End: March 31, 2024
• Key Management: Chairman Sunil Chordia
Performance Highlights
• Volume Growth: 16% consolidated volume growth.
• Revenue: Remained flat due to declining global steel prices.
• EBITDA Margins: Decreased by 21%.
• Profit After Tax: Dropped by 28%, totaling approximately INR 72 crores.
Regional Performance
• Thailand:
• Volume growth of 43%.
• Profitability impacted by low-cost Chinese competition.
• India:
• Slight volume increase of 2%.
• Challenges from cheap imports, but optimism about reduced imports due to government actions.
Investments and Capacity Expansion
• Chennai Plant:
• Investment nearing completion at INR 300 crores for 60,000 tons capacity.
• Initial margin pressures expected upon commencement.
• Thailand Investment: Cumulative investment reached THB 1.1 billion.
Capacity Utilization
• Current Utilization:
• Thailand: 75-80%
• India: 84-85%
• Future Plans:
• Targeting 85% utilization in Thailand and 15,000 tons from Chennai in FY'25.
Financial Metrics
• EBITDA per Ton:
• Thailand: THB 3,100
• India: INR 15,000
• Debt Levels:
• Below INR 200 crores (INR 135 crores in India, INR 55 crores in Thailand).
• Average cost of funds: 7.5% (5.8% in Thailand).
Competitive Landscape
• Expected to become the second-largest player in the wire bead segment post-Chennai unit completion.
• Ongoing competition from Tata Steel and low-cost imports, particularly from China.
Strategic Priorities
• Focus on making Chennai investment successful with at least 50% exports.
• Targeting major clients like MRF and Apollo.
• Plans to increase exports to the USA and Europe.
Market Dynamics
• Current market share in India: 38% overall, 40% in the auto sector.
• Anticipated flat growth in Pithampur as focus shifts to Chennai.
Future Outlook
• Optimism about growth as imports decrease.
• Plans to reduce INR 190 crore debt through improved cash flows.
• No major global capacity expansions announced, but Bansal Wire planning significant expansions in India.
Closing Remarks
• Confidence in growth prospects despite competitive pressures.
• Acknowledgment of shareholder interest and support.

Rajratan Global Wire Limited Earnings Conference Call Summary
Key Highlights
• Date of Call: October 23, 2023
• Earnings Period: Quarter and half-year ending September 30, 2023
• Management Present: Chairman Sunil Chordia and key executives
Financial Performance
• Volume Growth: 12% increase in consolidated volume from the previous quarter.
• EBITDA Margin: Targeting 18% for the full year, with improvements noted in Thailand.
• Future Projections: Optimistic about achieving 18-20% volume growth.
Capital Expenditure and Facility Updates
• Chennai Facility:
• INR 195 crores invested; trials to start by year-end.
• Full revenue expected in the next financial year.
• Additional INR 100 crores planned for capacity increase to 60,000 tons.
Market Dynamics
• Competition:
• Limited impact from Chinese imports due to regulatory barriers.
• Concerns about imports from Malaysia and Vietnam.
• Discounts offered to mitigate competitive pressures.
Regional Insights
• Europe: Positive traction with expected supplies to multinational tire companies.
• Thailand: Improved gross margins and projected EBITDA margins of 15-16%.
Challenges and Concerns
• Market Share Loss: Estimated loss of 1,000 tons due to Tata Steel's new capacity.
• Pricing Pressures: Competitive pricing challenges from new entrants and imports.
Strategic Focus
• Operational Efficiency: Emphasis on enhancing supply efficiency and customer relationships.
• Customer Approvals: Positive feedback from major tire companies like Continental and Bridgestone.
Future Outlook
• Investment Plans: Additional INR 20-25 crores for Chennai plant production.
• Market Stabilization: Anticipated stabilization in market dynamics despite current pressures.
Conclusion
• Management Confidence: Optimistic about growth trajectory and operational enhancements in Chennai and Thailand.

Rajratan Global Wire Limited Earnings Conference Call Summary
Earnings Call Overview
• Date: April 21, 2023
• Transcript submitted to BSE and NSE on April 27, 2023
• Key Management: Chairman Sunil Chordia
Financial Performance
• Volume Growth:
• India: Increased from 55,000 tons to 60,000 tons (8% growth)
• Thailand: Decreased from 35,000 tons to 30,000 tons
• Future Projections:
• FY24 India growth target: 15%
• Thailand production target: At least 40,000 tons
• Projected EBITDA margin: 18%
• Earnings growth forecast: 15-20% for FY24
Market Insights
• Tyre Market Growth:
• Indian tyre market expected to grow from ₹65,000 crores in FY23 to ₹1,65,000 crores by 2030
• Competitive Landscape:
• Facing pressures from Chinese suppliers
• Focus on volume over price
• New customer acquisition in Europe and Southeast Asia
Strategic Developments
• New Facility:
• Chennai plant set to begin production in H2 FY24
• Aims to enhance capacity and service local tyre companies
• Global Strategy:
• Plan to establish three production facilities globally
• Current market share: 8%, targeting 15% of global demand
Financial Challenges
• Thailand Operations:
• Lower gross profits due to reduced volumes and price pressures
• Market share in Thailand decreased to 16-17%
• Raw Material Prices:
• Slight correction with a 2% reduction noted
• Price adjustments in Thailand aimed at increasing market share
Production and Capacity
• Production Projections:
• Gradual increase: 8,000 tons in Q1, 10,000 tons in Q2, 12,000 tons in subsequent quarters
• Capacity utilization target for Thailand: 70%
• Total installed capacity: 120,000 tons across India and Thailand
Technological and Market Trends
• Impact of Electric Vehicles (EVs):
• Anticipated growth in overall tire demand by 10% in India
• Bead Wire Market:
• Identified major Chinese competitors
• Company plans to produce 180,000 tons across three locations
Conclusion
• Management expressed optimism for growth in the upcoming year, focusing on internal improvements and learning from past experiences.