New Delhi: Tyre ancillary and bead wire manufacturing company Rajratan Global Wire on Wednesday reported a multi-fold jump in its consolidated net profit to INR 21.92 crore for the first quarter ended June 30, 2021.
The Pithampur-based company had posted a net profit of INR 1.65 crore during the corresponding quarter of last fiscal, Rajratan Global Wire said in a release.
Its consolidated revenue from operations however declined marginally during April-June 2021 to INR 182.29 crore, against INR 183.65 crore in the year-ago period.
According to Sunil Chordia, CMD, Rajratan Global Wire, despite FY22 starting off on a challenging note led by an impact from the second wave of Covid-19, the company delivered strong performance and growth.
“This was primarily driven by strong demand from domestic tyre manufacturers as well as exports. Our timely expansion in India in FY20 (to 72,000 TPA) has started bearing fruits for us as we are aiming to increase the capacity utilisation levels over the current year and next year for the expanded capacity at Pithampur, Madhya Pradesh,” he said.
Similarly, the company has now taken up capacity expansion in Thailand from 40,000 TPA to 60,000 TPA owing to increased traction in the region as well as increasing market share, he said.
“After this expansion (expected by end FY22), Rajratan will become the second largest bead wire manufacturer in Asia outside China with a combined capacity of 120,000 TPA (for bead wire). Rajratan continues to be on the forefront of meeting the requirements of its customers, which has led to some of our key customers according Rajratan the prestigious Vendor Managed responsibility for some of their plants,” Chordia added
At present, the company has a production capacity of 72,000 TPA of wire (largest bead wire manufacturer) at a single location in India and 40,000 TPA at a single location in Thailand. The Board Of Directors have also approved its plans to evaluate an additional 60,000 TPA plant in Southern India to target domestic as well as export markets. This will be over and above the existing 72,000 TPA in India.