Rajas. Tube Mfg - Rajas. Tube Mfg

📊 BSE: 530253 🏢 Iron & Steel Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, Steel Tubes. Turnover decreased in FY2024-25, which led to a 27.3% drop in the Inventory Turnover Ratio from 5.96 to 4.33.

Geographic Revenue Split

Not explicitly disclosed, but the company focuses on the Rajasthan market due to purchase preferences in state government and semi-government organizations.

Profitability Margins

Operating Profit Margin and Net Profit Margin both remained stagnant at 0.01 (1%) for FY2024-25 and FY2023-24, indicating extremely thin profitability and high sensitivity to cost fluctuations.

EBITDA Margin

Operating Profit Margin was 1% in FY2024-25, showing no YoY change. Core profitability is constrained by high raw material costs and competitive pricing.

Credit Rating & Borrowing

The company has a credit rating of [ICRA]C; ISSUER NOT COOPERATING for its INR 20.00 Cr Cash Credit facility and [ICRA]A4; ISSUER NOT COOPERATING for its INR 12.25 Cr Non-Fund Based limits.

⚙️ Operational Drivers

Raw Materials

Hot Rolled (H.R.) Coils are the primary raw material for manufacturing M.S. steel tubes; specific percentage of total cost not disclosed.

Raw Material Costs

Raw material costs are a major concern due to the rise in H.R. coil prices, which directly impacts the company's 1% operating margin.

📈 Strategic Growth

Growth Strategy

Growth is targeted through purchase preferences in Rajasthan government and semi-government organizations. The company also implemented a 1:10 stock split (face value Rs. 10 to Re. 1) to increase liquidity.

Products & Services

M.S. Steel tubes and pipes.

Brand Portfolio

Rajasthan Tube Manufacturing Company Limited.

🌍 External Factors

Industry Trends

The steel tube industry is currently subject to market cycles. Increased availability of H.R. coils is expected to support industry prospects, though competition is rising.

Competitive Landscape

Greater competition is expected as more units with similar facilities are established, leading to lower price realization.

Competitive Moat

The primary moat is the purchase preference from the Rajasthan government, which is sustainable only as long as state policies remain favorable.

Macro Economic Sensitivity

Highly sensitive to steel industry market cycles and Rajasthan state government industrial policies.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by Rajasthan state government policies and standard steel industry manufacturing norms.

Legal Contingencies

No applications or proceedings were pending under the Insolvency and Bankruptcy Code 2016 during FY2024-25. Secretarial audit noted non-maintenance of a Structured Digital Database (SDD) as per SEBI Insider Trading regulations.