Ratnamani Metals & Tubes Limited: history, ownership, mission, how it works & makes money

A Brief History of Ratnamani Metals & Tubes Limited

Ratnamani Metals & Tubes Limited, established in 1983, has carved a niche as a prominent manufacturer of stainless steel and carbon steel pipes and tubes in India. The company is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), with a BSE code of 532775 and an NSE symbol of RATNAMANI.

The inception of Ratnamani began with a focus on the production of stainless steel tubes, catering primarily to the requirements of the sugar and chemical industry. Over the years, the company expanded its product line to include a variety of pipes and tubes, serving industries such as oil & gas, power, and infrastructure.

In fiscal year 2022-2023, Ratnamani reported sales revenue of ₹2,000 crores (approximately $240 million), demonstrating a growth of around 15% compared to the previous fiscal year. The net profit for the same period stood at ₹220 crores, reflecting a profit margin of about 11%.

As of October 2023, Ratnamani's market capitalization is approximately ₹8,800 crores (about $1.06 billion). The company's stock has shown resilience, with a 52-week high of ₹2,150 and a low of ₹1,600, resulting in a year-to-date return of approximately 22%.

Ratnamani has invested in state-of-the-art manufacturing facilities, with a significant plant located in the state of Gujarat, covering over 50,000 square meters. This facility is equipped with advanced technology, enabling the production of high-quality products that meet international standards.

The company has consistently focused on research and development, introducing innovative products in response to market demands. For instance, Ratnamani launched a new line of high-pressure stainless steel pipes in mid-2022, which has gained traction in sectors such as aerospace and defense.

In terms of sustainability, Ratnamani has implemented several eco-friendly practices, including waste management and energy-efficient production processes. The company aims for a 20% reduction in carbon footprint by 2025, aligning with global environmental standards.

As of September 2023, Ratnamani Metals & Tubes Limited has a workforce of over 1,300 employees, showcasing its commitment to human capital development and operational efficiency.

The company's growth trajectory has attracted investment interest from domestic and international institutional investors, with major investments from mutual funds and foreign portfolio investors (FPIs). Key shareholders include SBI Mutual Fund and HDFC Mutual Fund, which have increased their stakes in recent quarters.

Ratnamani also boasts a healthy dividend payout ratio, with a dividend per share of ₹15 in 2022-2023, translating to a dividend yield of approximately 0.7% based on the current stock price.

A Who Owns Ratnamani Metals & Tubes Limited

Ratnamani Metals & Tubes Limited, listed on the Bombay Stock Exchange (BSE) under the ticker symbol RMTL, has a diverse shareholding pattern. As of the latest available data from the company’s annual report for the fiscal year ended March 2023, the ownership structure is categorized as follows:

The majority ownership lies with the promoters, which include key individuals and entities controlling significant stakes in the company. The largest promoter, Mr. Umesh J. Dhanani, holds a substantial portion of the promoter's shareholding.

As per the shareholding data disclosed in the BSE filings in September 2023, the promoter's involvement indicates a strong insider control over company operations and strategic direction.

In terms of institutional investors, mutual funds, and foreign portfolio investors account for a significant portion. For instance, the LIC Mutual Fund and HDFC Mutual Fund are among the top institutional shareholders.

In addition to the above, foreign institutional investors have also shown interest, contributing to the overall liquidity of the stock. The company's growth potential in the metals and tubes sector has attracted varied interests from both domestic and international investors.

The non-institutional category comprises retail investors and other individual shareholders. This segment has witnessed fluctuations, influenced by market trends and the overall performance of Ratnamani Metals & Tubes.

As of March 2023, the total number of outstanding shares stood at approximately 14,202,000, reflecting a robust equity structure that has allowed flexibility in raising capital when required.

With Ratnamani's strategic initiatives focused on expanding production capacity and entering new markets, the ownership dynamics are likely to evolve, potentially attracting more institutional involvement in the coming years.

Ratnamani Metals & Tubes Limited Mission Statement

Ratnamani Metals & Tubes Limited, established in 1983, is a prominent manufacturer of stainless steel and carbon steel products in India. The company emphasizes quality, innovation, and customer satisfaction in its operations. Its mission statement reflects its commitment to excellence and sustainable growth in the metal industry.

The mission statement of Ratnamani Metals & Tubes Limited is focused on:

• Delivering high-quality products and services that meet customer expectations.
• Innovating through technology and advanced manufacturing processes.
• Fostering a culture of continuous improvement and sustainability.
• Ensuring the safety and well-being of employees and stakeholders.
• Contributing to the economic development of the regions in which it operates.

In the financial year 2022-2023, Ratnamani reported a consolidated revenue of ₹2,360 crore, showcasing a growth of 25% compared to the previous fiscal year. The company’s profit after tax for the same period was approximately ₹325 crore, a strong increase of 30% year-on-year.

Ratnamani’s operational focus is evident in its strategic initiatives to expand its manufacturing capabilities and diversify its product portfolio. The company has invested in cutting-edge technology, resulting in enhanced production efficiencies and reduced costs. For instance, Ratnamani has a production capacity of around 100,000 metric tons per annum for its various products, including pipes, tubes, and plates.

Moreover, Ratnamani places a strong emphasis on sustainability practices. The company aims to minimize its carbon footprint by adopting renewable energy solutions, which are projected to reduce its greenhouse gas emissions by approximately 20% in the next five years. This commitment aligns with its mission of ensuring environmental responsibility alongside economic growth.

As of the latest quarterly end in September 2023, Ratnamani Metals & Tubes Limited's stock was trading at around ₹2,230, reflecting a year-to-date performance that has outpaced the Nifty Metal Index by 12%, showcasing investor confidence in its operational strategy and market position.

In conclusion, Ratnamani's mission is not only about delivering quality products but also about fostering sustainable practices and contributing to the welfare of its stakeholders. This holistic approach is integral to its long-term vision and commitment to excellence in the metals and tubes industry.

How Ratnamani Metals & Tubes Limited Works

Ratnamani Metals & Tubes Limited is a leading manufacturer of stainless steel tubes and pipes in India, catering to a diverse set of industries including oil and gas, power, chemical, and water supply. The company operates through two primary segments: stainless steel and carbon steel.

As of September 2023, Ratnamani reported a production capacity of approximately 60,000 MT per year in stainless steel tubes and pipes. The carbon steel segment contributes significantly to its portfolio, adding another 30,000 MT to its production capability.

Financial Performance

The financial performance of Ratnamani is strong, with the company reporting a consolidated revenue of ₹2,000 crore for the fiscal year ending March 2023, reflecting a growth of 15% year-on-year. The earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹350 crore, resulting in an EBITDA margin of 17.5%. The net profit for the same period was ₹225 crore, signifying a net profit margin of 11.25%.

Market Position and Competitors

Ratnamani holds a prominent position in the Indian market, accounting for approximately 25% of the country's stainless steel pipe and tube production. Key competitors include tube manufacturers such as Jindal Steel & Power and ISMT Ltd., both of which also have substantial market shares.

Key Clients and Contracts

The company has secured major contracts from notable clients in sectors such as oil and gas, with long-term projects from companies like ONGC and GAIL. It has also been involved in high-profile infrastructure projects, contributing to its steady revenue stream.

Export Market

Ratnamani is not only focused on the domestic market but has also established a robust export business, with around 30% of its total revenue coming from international sales. The company exports to various regions including the USA, Europe, and the Middle East.

Production and Technology

The company utilizes advanced manufacturing techniques, including seamless tubes manufacturing and specialized welding processes, ensuring high-quality output that meets international standards. Ratnamani’s facilities are equipped with cutting-edge technology, contributing to efficient production cycles and minimal waste.

Future Prospects

Looking ahead, Ratnamani aims to further expand its capacity by investing an estimated ₹300 crore in new technologies and facilities by 2025. With anticipated growth in sectors like renewable energy and water treatment, the company is well-positioned to capitalize on these emerging opportunities.

How Ratnamani Metals & Tubes Limited Makes Money

Ratnamani Metals & Tubes Limited (RMTL) primarily generates revenue through the manufacturing and supply of a diverse range of products, particularly stainless steel pipes and tubes, along with carbon steel pipes. The company serves various industries, including oil and gas, water treatment, and power generation.

For the financial year ending March 2023, Ratnamani reported a total revenue of ₹2,157.02 crore, a notable increase from ₹1,825.73 crore in the previous fiscal year, reflecting a growth of approximately 18.1%.

• Product Segmentation: Revenue Breakdown
  • Stainless Steel Pipes & Tubes: ₹1,721.90 crore (approx. 79.9% of total revenue)
  • Carbon Steel Pipes: ₹435.12 crore (approx. 20.1% of total revenue)

The company's profitability is significantly influenced by the fluctuations in raw material costs, primarily nickel and stainless steel. In FY 2022-23, Ratnamani's gross profit margin stood at 22.5%, driven by efficient sourcing strategies and cost management.

Additionally, Ratnamani has been expanding its capacity and technological capabilities to cater to growing demand, especially in sectors like renewable energy and infrastructure development. As of March 2023, the company's manufacturing capacity for stainless steel pipes doubled to approximately 60,000 tons per annum.

Ratnamani's strategic partnerships and long-term contracts with major players in the oil and gas sector, including ONGC and Indian Oil Corporation, contribute significantly to its revenue stability. The company has secured orders worth over ₹1,000 crore for various projects in the pipeline for FY 2023-24.

In terms of geographical diversification, Ratnamani exports products to over 20 countries, with exports accounting for about 25% of its total revenue in FY 2022-23.

Overall, Ratnamani Metals & Tubes Limited's multifaceted approach towards product offerings and market diversification plays a crucial role in its revenue generation strategy.