RAMA STEEL TUBES LTO.

M anufacturers & Exporters: ERW Steel Tubes (Bla ck & Galvanised)

CIN: l 2720lD11974PlC007114 I AN ISO 9001 : 2015 CO.
G Regd. Office: 8 - 5, 3rd Floor, Main Road, Ghazipur, New Delhi (In dia) - 110096

B UI LD W I T H TR U S T
G +(91)- (11 )- 43446600 e info @ram ast eel. com CD www .ra m ast ee l. com

PRESS RELEASE

Rama Steel Tubes Ltd. Announces Results

Q2FY2023 consolidated performance overview compared withQ2 FY2022

~ Total revenue ofINR 3500.79 MN for Q2 FY23 showing robust growth of78.64% as
against INR 1959.66 MN in Q2FY22

~ Total Sales Volume of 48,774.67 MT for Q2 FY23 showing impressive growth of

82.89% as against 26,668.58 MT in Q2FY22

~ EBIDTA stood INR 109.96 MN in Q2FY23 against INR 121.84 MN in Q2FY22

~ PAT Margin (including OCI) stood INR 55.72 MN in Q2FY23 against INR 69.71
MN in Q2FY22

HIFY2023 consolidated performance overview compared with HI FY2022

~ Total revenue of INR 5937.01 MN for HI FY23 showing robust growth of 75.37% as
against INR 3385.44 MN in HIFY22

~ Total Sales Volume of 78,608.63 MT for HI FY23 showing impressive growth of

68.33% as against 46,698.18 MT in HIFY22

~ EBIDTA stood INR 209.14 MN in HIFY23 against INR 242.99 MN in HIFY22

~ PAT Margin (including OCI) stood INR 104.32 MN in HIFY23 against INR 139.96
MN in HIFY22

Business Update
I • RSTL has initiated a massive capacity expansion of additional 30,000 MT at Khopoli
Plant. Maharashtra. The expansion is expected to be completed by the end of2nd Quarter ofFY23
·1
and commercial production is expected to begin in 3rd quarter ofFY23. Rama Steel Tubes Industries
Limited (stepdown subsidiary of RSTL) has commenced the setting up ofa new facility in Nigeria, __- __
South Africa having an installed capacity of 20,000 MT. The total capital outlay for this expansion ._--__
will be Rs.200 MN and will be funded through the internal accruals. The new facility is (7xplect(~d
to be fully functional in 3rd quarter ofFY23.
 • On 14th February, 2022, The Board of directors have approved a scheme of Amalgamation of
Lepakshi Tubes Private Ltd, a wholly owned subsidiary of RSTL with the latter company under
sections 230-232 of The Companies Act,2013. This merger has been proposed to bring about
operational synergies and cost savings to both the companies.

• During the period under review the following transaction were held in the Company:

I. Sub-division of Equity Shares ofthe Company from FV ~ 5/- each to FV ~ 1/- each w.e. f 25th
August, 2022.
2. A.) Acquisition of 51 % stake in Mis Ashoka lnfrasteel, a partnership firm from its partners by
allotment of fresh Equity Shares 3455135 (After Sub Division) ofFV ~ 1/- each at a price of~78/­
each (including premium) against 49% on a preferential basis on 31 st August, 2022 and for
remaining 2% company has made cash consideration. As a result Mis Ashoka Infrasteel,
a partnership firm has become the subsidiary of Rama Steel Tubes Limited, thus financials of Mis
Ashoka Infrasteel for the period from September 01 , 2022 till September 30, 2022 have been
considered in the consolidated financials considering minority interest (Non-controlling Interest).

B.) Acquisition of 50% shareholdings in Mis Hagar Mega Mart Private Limited by allotment of
fresh Equity Shares of 641030 (After Sub-Division) of FV ~ 1/- each at a price of ~ 78/- each
(including premium) on a preferential basis on 31st August, 2022. As a result, Mis Hagar Mega
Mart Private Limited has become the associate of Rama Steel Tubes Limited, thus our share in
Net Profit I(Loss) including OCI of Associate for the period September 01 ,2022 till September
30, 2022 have been considered in the consolidated financials.

3. Allotment of 31,65,000 Equity Shares on 23rd September, 2022 in lieu of Convertible

Warrants allotted on preferential basis to promoter and non-promoter group on 10th June, 2022.

Commenting on performance

"We have reported a strong HI FY23 with the growth in Revenue from operations being 75.37%
and growth in sales volume of 68.33% on Y-0- Y basis. There is growth in demand of our products
having the highest level of quality and our ability to cater the needs of all our customers on timely
basis.

The announcement of huge government projects like UPPCL, Jal Shakti Abhyaan in the
infrastructure sector & various public sector projects has boosted demand for our products
significantly. We are also in process of entering into certain niche segments like supply of steel
pipes and tubes to City Gas Distribution and Solar Energy power generation units. We plan to
dedicate at-least 25% of our production capacity 300000 MT to cater to the demand of the
Government sector in the coming years, which is having an EBITA margin of 9%-10%, thereby
significantly improving our overall margins. From the facility, in the process of being set up, in
Nigeria, we have already signed purchase agreement of 15,000 MT p.a. for supply of specialty
steel from Huihai Group Ltd , Hong Kong. The potential market size for Specialty Steel in Nigeria
is ~50 , 000 MTP A and we are happy to cater almost 1I3 rd of the total market size.
On the expansion front , we are in process of modernization of our plant located at Sahibabad, Uttar
Pradesh with a major goal of de-bottlenecking operations; which will result in increasing our yield
per tonne of finished products. The I st phase of this modernization is expected to be completed by
Q3 of the Fiscal Year 2023. Our efforts of backward integration at our plant in Anantpur District,
Andhra Pradesh wherein we are in process of Cold rolling and Galvanizing Steel Sheets will lead
to an in-house raw material support of 50,000 MT in the upcoming years. With the expansion of
Khopoli plant by ~30,000 MT and the setting up of facility in Nigeria by our stepdown subsidiary,
we expect our total capacity to increase to 300000 MT by end of FY23. Further to this, we are in
process of adding 10 SKUs to our repertoire on a monthly basis, projecting a total of 700 SKUs
being produced in period of 2 years. This will strengthen our relationships with distributors by
offering a complete range of products and make RSTL one of the leading suppliers of Steel Pipes
and Tubes in the forthcoming years.

Moreover, our recent efforts at backward integration are expected to reduce dependency on
external raw material suppliers. Further, even in such a difficult market, we were able to procure
large orders and expect to procure more of such orders."

About Rama Steel Tubes Limited

Rama Steel Tubes Limited (RSTL) is a pioneer and leading manufacturer in the steel tube
industry. RSTL has been continuously striving to improve its performance by increasing sales,
share of value-added products, innovating new products and aggressive cost optimization on a
continual basis. RSTL products range includes MS ERW black pipes from 15mm to 200mm
diameter pipes confirming to IS: 1239, IS: 1161, IS:3589, IS:3601, & IS:4270 and G.I. Pipes from
15mm to 150mm NB in light, medium and heavy sizes. RSTL has 20% exports rate, with a global
presence in more than 16 Countries. RSTL has a subsidiary in UAE and a step-down subsidiary
in Nigeria which has strengthened the company's presence in global markets. RSTL has the world's
latest technology, plant and machinery, which also includes sophisticated testing equipment.
RSTL has 4 state-of-art manufacturing capabilities located at Sahibabad (V.P.), Khopoli
(Maharashtra) and Anantpur (Andhra Pradesh) and has got strong distributor network spread
across India.
For further information on the Company, please visit}y~J:1!..:r.g!!Lq§.f??..Lf.Q!!J