The BSE SmallCap index multibagger stock Rama Steel Tubes has released its profits for the April-June quarter of the 2023–24 fiscal year. Sales rose 30% for the iron and steel manufacturer due to greater local demand.
The quarter’s income from operations was Rs 312.52 crore, up from Rs 240 crore the year before.
According to a BSE statement from the firm, robust demand during an economic upturn drove sales volume up 62% to 48,437 metric tonnes.
Profit after tax rose 76% to Rs 7.46 crore in the first quarter from Rs 4.23 crore the year before.
The business stated in a statement that “the numbers were led by increasing demand for steel tubes and pipes across various industries.”
“However, the downward pressure on steel prices, and increase in supply of Chinese steel in India did act as a bump in the road,” the statement continued. By the conclusion of FY24, the business anticipates that steel prices will have stabilized.
Additionally, a foreign institutional investor (FII) completed a large deal during the quarter. Societe Generale purchased 610,000 equity shares of the firm at an average price of Rs. 38.17 per share, for a total transaction value of Rs. 22.90 crore, according to bulk deal data made public on the BSE. One of the top organizations providing financial services in Europe is Societe Generale.
Additionally, it formed a cooperation with JSW Steel to buy hot rolled coils (HRC), which are used to make steel pipes, tubes, and other industrial goods.
Investors have received multibagger returns of more than 250 percent from shares in Rama Steel Tubes over the last two years.
Conclusion:-
Rama Steel Tubes, a BSE SmallCap index multibagger stock, reported a 30% increase in sales for the April-June quarter of the 2023-24 fiscal year. The company, primarily producing iron and steel products, experienced a 62% increase in sales volume and a 76% increase in profit after tax. The growth was fueled by strong demand during an uptick in economic activity. The company anticipates that steel prices will stabilize by FY24. Societe Generale, a top European financial services organization, purchased 610,000 equity shares of the firm at an average price of Rs. 38.17 per share. Additionally, it formed a cooperation with JSW Steel to buy hot rolled coils (HRC) for steel pipes and other industrial goods. Investors have received multibagger returns of over 250 percent from Rama Steel Tubes shares over the last two years.
