MIRA
INFORM REPORT
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Report Date : |
13.01.2011 |
IDENTIFICATION DETAILS
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Name : |
RATNAMANI METALS AND TUBES LIMITED |
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Registered Office : |
17 Rajmugat Society, Naranpura Char Rasta, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
15.09.1983 |
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Com. Reg. No.: |
04-6460 |
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CIN No.: [Company
Identification No.] |
L70109GJ1983PLC006460 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMR01519A |
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Legal Form : |
Public
Limited Liability Company. The company’s shares are listed on the Stock
Exchange. |
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Line of Business : |
The company
is engaged in manufacturing and marketing of Stainless Steel Tubes and Pipes,
Saw Pipes and Carbon Steel Tubes and Pipes. |
RATING & COMMENTS
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MIRA’s Rating : |
A (66) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 14400000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
– established and a reputed company having fine track. Financial position of the
company appears to be sound. Trade relations are reported as fair. Business
is active. Payments are reported to be
regular and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DENIED BY
|
Name : |
Mr. Rakesh Agarwal |
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Designation : |
Accounts |
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Date : |
12.01.2011 |
LOCATIONS
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Registered Office / Sales Office : |
17 Rajmugat Society, Naranpura Char Rasta, |
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Tel. No.: |
91-79-27415501/2/3/4 |
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Fax No.: |
91-79-2748
0999 |
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E-Mail : |
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Website : |
www.ratnamani.com |
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Mumbai Office : |
404-B
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Tel. No.: |
91-22-43334555 |
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Fax No.: |
91-22-43334575 |
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E-Mail : |
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Head Office / Factory 1: |
STAINLESS STEEL TUBES AND PIPES DIVISION Survey
No. 769, |
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Tel. No.: |
91-2764-232254/232263 |
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Fax No.: |
91-2764-234105 |
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E-Mail : |
info.sstp@ratnamani.com |
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Website : |
www.ratnamani.com |
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Factory 2: |
SAW PIPE DIVISION Plot
No. 3306, 3308 & 3309, GIDC–Chhatral,Taluka – Kalol, District.– Mehsana, |
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Tel. No.: |
91-2764-232234/233919/232409 |
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Fax No.: |
91-2764-233859 |
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Factory 3: |
Survey No. 474,
Village – Bhimasar, Taluka – Anjar, District.–Kutch, |
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Tel. No.: |
91-2836-285538/285539 |
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Fax No.: |
91-2836-285540 |
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Branches : |
44, |
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Ratnamani Techno Casts Limited (RTCL) : |
Plot No. 3310, GIDC
Estate Chhatral, Phase IV, Ahmedabad – |
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Tel. No.: |
91-2764-233327 / 234488 |
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Fax No.: |
91-2764-233165 |
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E-Mail : |
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr.
Prakash M. Sanghvi |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
49 years |
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Qualification : |
Matriculation |
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Experience : |
28 years |
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Date of Appointment : |
12.06.1989 |
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Name : |
Mr.
Jayantilal M. Sanghvi |
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Designation : |
Whole-time Director |
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Qualification : |
1st
B.Com. |
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Date of Appointment : |
12.06.1989 |
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Name : |
Mrs.
Shantilal M. Sanghvi |
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Designation : |
Director |
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Qualification : |
Under graduate |
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Date of Appointment : |
01.11.1998 |
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Name : |
Mr.
D. C. Anjaria |
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Designation : |
Director |
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Name : |
Dr.
Vinodkumar M. Agarwal |
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Designation : |
Director |
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Name : |
Mr. P. M. Merita |
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Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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26,718,391 |
57.71 |
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26,718,391 |
57.71 |
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Total shareholding of Promoter and Promoter Group (A) |
26,718,391 |
57.71 |
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(B) Public Shareholding |
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1,252,600 |
2.71 |
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|
330 |
- |
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3,346,718 |
7.23 |
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4,599,648 |
9.94 |
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1,931,700 |
4.17 |
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4,905,244 |
10.60 |
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7,683,339 |
16.60 |
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457,737 |
0.99 |
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|
457,737 |
0.99 |
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14,978,020 |
32.35 |
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Total Public shareholding (B) |
19,577,668 |
42.29 |
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Total (A)+(B) |
46,296,059 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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Total (A)+(B)+(C) |
46,296,059 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 millionBUSINESS DETAILS
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Line of Business : |
The company
is engaged in manufacturing and marketing of Stainless Steel Tubes and Pipes,
Saw Pipes and Carbon Steel Tubes and Pipes. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2010):-
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Stainless Steel Tubes & Pipes |
MT |
21900 |
10190 |
|
Carbon
Steel Pipes |
MT |
350000 |
112562 |
|
Generation of Power using
Windmills (other than for captive consumption) |
‘000 Units |
27300 |
21275 |
GENERAL INFORMATION
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No. of Employees : |
2000 (approximately) |
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Bankers : |
Ř
Dena
Bank Ř
Punjab
National Bank Ř
State
Bank of Ř
IDBI
Limited Ř
ICICI
Bank Limited |
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Facilities : |
NOTE- 01 (a) Term Loans from
lClCl Bank (UK) Limited, Syndicate Bank and Bank of Maharashtra are secured
by first charge on the Company’s entire immovable and movable properties
situated at Survey Nos. 769,
780 and 787, Village Indrad, Chhatral, Tal. Kadi, Dist. Mehsana and Survey No. 474, Village Bhimasar, Tal.
Anjar, dist. (b) Term Loan of
USD 13.0 Million from lClCl Bank Limited, Hong Kong branch is secured by an
exclusive charge over all the 8
windmills along with related equipments/ machinery situated at Moti Sindholi,
Kutch, (c) Term Loan of
USD 8.0 Million from IClCl
Bank Limited, Hong Kong branch is secured
by an exclusive charge over movable assets in respect of 3Layer PE Coating
Line and Offline Welding and .Finishing Lines for HSAW plant situated at Sunrey No. 474, Vlllage Bhimasar,
Tal.Anjar, DM. Kutch. NOTE -02 Working Capital
Facilities from State Bank of
India, Punjab National Bank, Dena Bank, ICICI Bank Limited and industrial
Development Bank of India
Limited are secured by : i) Hypothecation
of Inventories,
Book Debts, all other
movables li) Second charge on Fixed Assets of the
Company except (a) 8 wind m111s
along with related equipments machinery
situated at Moti Sindholi,
Kutch, (b) movable assets in respect 3tatyer
P E Coating Line and Offline Welding
and Finishing Lines for HSAW
plant situated at Survey No.474, Vlllage
Bhlmasar, Tal. Anjar, Diet. iii) Personal
guarantees of some of the Directors
of the Company iv) Joint
equitable mortgage of all
immovable properties held as free-hold and leasehold lands of the Company,
except leasehold land related to 8wind mills situated at Moti Sindholi, Kutct~a nd 3Layer PE Coating Line and Offline Welding and Finishing line
for HSAW plant situated at Survyey
N0.474, Village Bhirnasar, Tal. Anjar, Dist. NOTE -03 Additional
Working Capital Facilities of Rs. 1217.000
millions from lClCl Bank
Limited are secured by : i) Hypothecation of Inventories, Book debts, all other movable by way of subservient charge. ii) Personal
guarantee of one of the directors of the company. NOTE - 04 Buyer's Credit (Foreign Currency Loans)
are secured by way of Guarantee
Assistance by a consortium of Banks.
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Mehta
Lodha and Company (Chartered
Accountants) |
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Address : |
63
Hirabhai Market, |
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Associates/Subsidiaries : |
v
Ratnamani
Food Products Private Limited v
Ratnamani Marketing Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
75000000 |
Equity Shares |
Rs. 2/- each |
Rs.150.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
45943384 |
Equity Shares |
Rs. 2/- each |
Rs. 91.887 millions |
NOTES:-
- Out of the above shares, 1,53,51,000 Equity
Shares of Rs. 2/- each
were allotted as fully paid up by way of
Bonus Shares by capitalising General Reserve.
- Out of the above shares, 1,23,00,665 Equity
Shares of Rs. 21- each were allotted as fully
paid up for consideration other than cash, on amalgamation.
- During the year,
the Company has allotted 9,43,384 Equity Shares of Rs.21- each under Employees Stock Option Scheme, 2006.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
91.887 |
90.000 |
90.000 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
3524.771 |
2752.529 |
2142.211 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
3616.658 |
2842.529 |
2232.211 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2704.994 |
1272.498 |
1262.158 |
|
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2] Unsecured Loans |
496.471 |
634.141 |
255.480 |
|
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TOTAL BORROWING |
3201.465 |
1906.639 |
1517.638 |
|
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DEFERRED TAX LIABILITIES |
580.940 |
535.546 |
454.723 |
|
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Employee Stock options outstanding |
30.575 |
39.487 |
26.325 |
|
|
Convertible Warrants |
0.000 |
0.000 |
42.750 |
|
|
|
|
|
|
|
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TOTAL |
7429.638 |
5324.201 |
4273.647 |
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
3599.396 |
3658.752 |
2634.913 |
|
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Capital work-in-progress |
29.712 |
199.762 |
217.469 |
|
|
|
|
|
|
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INVESTMENT |
500.493 |
0.070 |
0.068 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1675.677
|
1010.008
|
1502.664 |
|
|
Sundry Debtors |
1663.088
|
1230.557
|
1140.425 |
|
|
Cash & Bank
Balances |
243.016
|
521.142
|
198.354 |
|
|
Other Current
Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans &
Advances |
814.253
|
528.359
|
293.067 |
|
Total
Current Assets |
4396.034
|
3290.066
|
3134.510 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
739.947
|
1485.084
|
0.000 |
|
|
Current
Liabilities |
135.020
|
187.028
|
1580.631 |
|
|
Provisions |
221.030
|
152.337
|
132.682 |
|
Total
Current Liabilities |
1095.997
|
1824.449
|
1713.313 |
|
|
Net Current Assets |
3300.037
|
1465.617
|
1421.197 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7429.638 |
5324.201 |
4273.647 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales Turnover |
8368.623 |
9391.588 |
8336.363 |
|
|
|
Wind Mill income |
150.886 |
160.462 |
114.543 |
|
|
|
Other Income |
14.829 |
14.243 |
19.427 |
|
|
|
TOTAL (A) |
8534.338 |
9566.293 |
8470.333 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
5662.685 |
6298.188 |
5368.505 |
|
|
|
Salaries, Wages, Bonus, etc. |
474.103 |
383.041 |
361.739 |
|
|
|
Other Expenditure |
707.483 |
1320.912 |
923.860 |
|
|
|
TOTAL (B) |
6844.271 |
8002.141 |
6654.104 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1690.067 |
1564.152 |
1816.229 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
17.498 |
167.247 |
183.988 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1672.569 |
1396.905 |
1632.241 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
368.823 |
297.230 |
238.316 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1303.746 |
1099.675 |
1393.925 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
489.475 |
387.642 |
493.673 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
814.271 |
712.033 |
900.252 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
325.729 |
208.462 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
500.000 |
500.000 |
NA |
|
|
|
Proposed Dividend |
101.076 |
81.000 |
NA |
|
|
|
Tax on Dividend |
17.178 |
13.766 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
521.746 |
325.729 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3267.929 |
2620.335 |
2556.525 |
|
|
|
Stores & Spares |
106.741 |
62.366 |
35.775 |
|
|
|
Capital Goods |
85.081 |
573.765 |
126.100 |
|
|
TOTAL IMPORTS |
3459.751 |
3256.466 |
2718.400 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
18.00 |
15.82 |
20.01 |
|
|
|
- Diluted |
17.95 |
15.36 |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 (1st
Quarter) |
30.09.2010 (2nd
Quarter) |
|
Net Sales |
2190.310 |
1756.900 |
|
Total Expenditure |
1816.440 |
1441.870 |
|
PBIDT (Excl OI) |
373.870 |
315.030 |
|
Other Income |
31.200 |
51.030 |
|
Operating Profit |
405.070 |
366.060 |
|
Interest |
28.740 |
27.390 |
|
PBDT |
376.330 |
338.670 |
|
Depreciation |
95.590 |
98.940 |
|
Profit Before Tax |
280.740 |
239.730 |
|
Tax |
83.370 |
54.530 |
|
Profit After Tax |
197.370 |
185.200 |
|
Net Profit |
197.370 |
185.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
9.54 |
7.44 |
10.63 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
15.57 |
11.71 |
16.72 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets) |
(%) |
16.30 |
15.38 |
23.28 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.36 |
0.38 |
0.62 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.35 |
1.31 |
1.45 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.01 |
1.80 |
1.83 |
LOCAL AGENCY FURTHER INFORMATION
The Details of
Sundry Creditors:
Rs.
In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
739.947
|
1485.084
|
0.000 |
HISTORY
The
company was incorporated in Sep.'83 as a small scale industrial undertaking as
Ratnamani Metals and Tubes Private
Limited , became a deemed public limited company in Jul.'89. Another
small-scale unit, Ratnamani Tube Industries Private Limited
was set up by the same promoters in 1985, which too became a public
limited company in Jul.'90. Both the companies were converted into medium-scale
units through expansion within 2-3 years of establishment. Ratnamani Tube
Industries was amalgamated with Ratnamani Metals and Tubes in Apr.'91.
Subject manufactures stainless steel seamless and welded pipes and tubes of
various diameters upto 16" (cap.: 3000 tpa). In addition, it undertakes
job-work for drawing of pipes.
In Mar.'93, the company came out with a public issue to part-finance its Rs
65.700 millions project to upgrade its manufacturing facilities and augment its
working capital. Under this project, in 1993-94, it installed four pilger
machines imported from
It is having a separate divisions for S S Instrumentation Tubes and S S Heat
Exchanger Tubes with additional capacity of 10 MT and 100 MT per month respectively.
It has also undertaken modernisation of Weilded Tubes manufacturing facilities
which was successfully developed in the year 1999-2000.
During 1997-98, it installed the Saw Pipes and Carbon Steel Tubes and Pipes
with a capacity of 10,000 MT and 1,200 MT.
During 1998-99, As per the scheme of amalgamation Ratnamani Engineering Limited
was amalgamated with Ratnamani Metals and Tubes Limited.
The company is planning to develop capability of tape coating and cement mortar
gunniting on pipes. The company has also been issued license for using the API
monogram for API 2B products.
ISO 9002:1994
The
company has already been awarded BSEN ISO 9002:1994, a prestigious
certification. This puts The Company at
par with other International Companies in respect of globally accepted Quality
Management Systems.
AD 2000 – Merkblatt W 0
The
company had received AD 2000 – Merkblatt W 0 Certificate issued by TUV Germany,
whereby the marketability of S. S. Tubular products is expected to increase,
particularly for exports to
REVIEW OF OPERATIONS:
A. GENERAL:
The year under
review started with legacy of previous year which witnessed one of the worst
economic crises in the world
history affecting every economy and business Irrespective of its location,
size, technology or nature of the
products. The company's business was also affected because of these
global events and as a result, performance during the year has been impacted to
some extent. Global markets have remained subdued affecting the overseas demand
and as a consequence, exports were low. On domestic front, however, the
situation has been better. The management has taken up initiatives to
consolidate the Company's presence In
both, international as well as domestic markets, enhance the product range and
customer base, strengthen the organizational structure and systems to minimise the impact of the slow down and prepare itself for the
future,
B. FINANCIAL
PERFORMANCE:
During the year
under report, the Company has posted gross income at Rs. 8998.816 millions. Not withstanding the challenges posed by
recessionary conditions in the user
industries, it has been possible to control some of the costs and
safeguard the margins. As a result of these efforts, the profit before tax
stood at Rs 1303.746 millions, higher by 18.55 % as compared to the previous year. The Company has posted profit
after tax of Rs. 814.271
millions which is higher by 14.35 %.
C. OPERATIONS:
Barring some of
the products, where optimum utilization of capacities could not be achieved due
to market conditions, inspite of the recessionary conditions, it has been
possible to utilise the capacities to the optimum levels possible. Looking to a very positive investment scenario
in Power sector, the Company has undertaken projects for increasing the
capacity in SS Welded HP Heater Tubes and manufacture of Titanium Welded Tubes.
These are expected to be
operational during the third quarter of FY
201 0-1 1.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRIAL
SCENARIO:
GENERAL
The year 2009-10
was one of the toughest years for the Petrochemical industry, one of the major
consumers of company's products. The economic downturn reduced investment
demand across majority of the industries the Company caters to. Fortunately, a very wide range of
product basket catering to almost all types of industrial applications helped
your company to withstand the low demand scenario. Moreover, there was a relief
that Indian economy and Business was relatively less affected from the
recessionary demand slump. The business environment has been improving since
third quarter of FY 2009-10, but
at much lower rate than expected. The global recessionary effects are still being felt as
evidenced by the very slow pick up of export demand
over the period.
During 2010-11,
Indian economy is expected to grow at approx.8%. The investments in
infrastructure projects would continue and provide opportunities to Indian
Piping Industry. Particularly investments in Oil and Gas transportation,
Irrigation and water supply pipelines, Power plants and likely opening up of
the Atomic Power sector should generate demand for the company's products.
International demand would depend upon how fast economies return back to normalcy and new
project8 In oil exploration and production are taken up.
During the year under review, reconsolidation
of domestic demand has been faster than the export demand. Raw material prices
have been volatile; these were on the lower side at the beginning of the year
and have been on the higher side later on. The Company's business is dependent upon the demand from the
Oil and Gas industry, mainly refineries and petrochemicals and Power sector to
a great extent. Though the investment scenario within the country in these
industries has been good, internationally, it was not so. The lower global
demand scenario has resulted into pricing and margin pressures. These negative
factors impacted the performance of the Company during 2009-10.
INDIAN PIPE
INDUSTRY
MARKETING
SCENARIO,
STAINLESS STEEL
DIVISION
The majority of
revenue generated by Stainless Steel Division is from the business generated in
sectors such as Oil and Gas, Petrochemicals and Refineries, Power sector,
Desalination plants, Chemicals, Fertilizer, Pharmaceutical, and Sugar
industries.
Oil and Gas I
Petrochemical and Refineries
Sector
Due to the sudden drop in the prices of
crude and the financial crisis engulfing the developed nations, focus on
investment in Oil and Gas is gradually shifting to developing nations such as
Globally speaking,
no major investments are anticipated in the
Power Sector
This sector
remains very buoyant not only in
Desalination Plants
The Company sees a
good potential from this segment. This is a growing segment both
internationally and domestically. The Company has already initiated steps to
exploit this sector and is hopeful of good demand from this segment .
Fertilizer
A lot of improvement seems to be there in Fertilizer
sector with the support of Government. Definite investments in new or enhancing
capacities of fertilizer plants are on the
cards. Stainless Steel is being substantially used in the Fertilizer
plants and hence should be having a better demand in this sector. The company
Is looking for developing special grades in this sector also. Even though the
quantity of these grades are very low, this will give an exposure to the world
scenario and establish the Company as one of the major players in this grades
i.e. Urea grade. Stainless Steel Piping in Seamless and Welded will be of a
major thtust in fertilizer plants and the company foresees a good business
prospects in this segment.
Nuclear Power
Plants
One area, where
there is a huge potential for supply of
various type of tubes and
pipes is Nuclear Power sector. The Company is trying to establish its
strong presence in this segment. The business from this sector is
promising and has a long-term potential. This is a developing market in terms
of new applications having opportunities and having challenges too. Your
company is confident of converting these opportunities into a profitable
revenue stream.
CARBON STEEL AND COATING
The year 2009-10
witnessed very low demand from the Line pipe sector which Is a major market for
the CS SAW pipes. The global economic crisis
affecting Middle East, Europe and
During the year
2009-1 0 raw material prices remained volatile varying between US $ 500- US$ 700 per MT. This is
expected to continue during the coming year 201 0-11 also.
There would be
marginal improvement in the performance during second half of the year with servicing of the
current orders/enquiries. but for this, the year 2010-11 as a whole would still remain subdued, as it would take
some more time for the demand to pick up.
Current uncertain
scenario of the European and American economies would also impact the demand
revival.
Future Outlook and
Opportunities:
The Company is one
of the leading players in the Indian Piping Industry today. It has established
reputation as the preferred supplier to
almost all players in Oil and Gas, Power, Pharmaceutical and Fertilizer industry,
which are your company's prime markets. It is preferred for its quality and
capability to supply a full range of piping
products of both Carbon Steel as
well as Stainless Steel. The Company has emerged as a single stop source of
pipes and tubes for an array of
industrial applications.
FIXED
ASSETS
Ř
Goodwill
Ř
Ř
Ř
Buildings
Ř
Plant
and Machinery
Ř
Furniture
and Fixtures
Ř
Vehicles
Ř
Equipments
UNAUDITED
FINANCIAL RESULTS FOR THE 2nd QUARTER ENDED 30.09.2010
Rs. In Millions
|
|
Quarter ended (Unaudited) |
Half year ened (Unaudited) |
|
Particulars |
30.09.2010 |
30.09.2010 |
|
Net Sales / Income from Operations |
1756.901 |
3947.208 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
183.344 |
153.405 |
|
(b) Consumption of Raw Materials |
940.576 |
2405.332 |
|
(c) Purchase of traded goods |
60.044 |
60.044 |
|
(d) Employees Cost |
115.212 |
238.434 |
|
(e) Depreciation |
98.936 |
194.528 |
|
(f) Other Expenditure |
139.694 |
398.099 |
|
Total Expenditure |
1540.806 |
3452.842 |
|
Profit From Operations before other Income Interest & Exceptional Items |
216.095 |
494.366 |
|
Other Income |
51.025 |
82.228 |
|
Profit before Interest and Exceptional items |
267.120 |
576.594 |
|
Interest |
27.392 |
56.130 |
|
Profit after interest but before Exceptional items |
239.728 |
520.464 |
|
Exceptional Items |
- |
- |
|
Profit From Ordinary
activities before Tax |
239.728 |
520.464 |
|
Tax Expenses |
54.534 |
137.905 |
|
Net Profit From Ordinary activities after Tax |
185.194 |
382.559 |
|
Extraordinary Items (net of Tax Expenses) |
- |
- |
|
Net Profit From Ordinary activities |
185.194 |
382.559 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
92.592 |
92.592 |
|
Reserves (Excluding Revaluation Reserves) |
- |
- |
|
Earnings per share
(EPS) before and after Extraordinary items for the period and for the
previous yea (In Rs. Not annualised) |
|
|
|
-Basic |
4.02 |
8.31 |
|
-Diluted |
4.00 |
8.26 |
|
Public Share Holding |
|
|
|
- Number of Shares |
19577668 |
19577668 |
|
- Percentage of shareholding |
42.28% |
42.285 |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
400000 |
400000 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
1.50% |
1.50% |
|
- Percentage of shares(as a % of the total share capital of the company) |
0.87% |
0.87% |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
26318391 |
26318391 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
98.50% |
98.50% |
|
- Percentage of Share (as a % of the total share capital of the company) |
56.85% |
56.85% |
Segmentwise Revenue, Results And Capital
Employed For The 2nd Quarter Ended On 30.09.2010
|
|
|
Quarter Ended (Unaudited) |
Half Year Ended (Unaudited) |
|
Sr. No. |
Particulars |
30.09.2010 |
30.09.2010 |
|
1. |
Segment Revenue |
|
|
|
|
a. Steel Tubes
and Pipes |
1732.603 |
3902.082 |
|
|
b. Windmills |
24.298 |
45.126 |
|
|
Total |
1756.901 |
3947.208 |
|
|
Less:- Inter
segment Revenue |
- |
- |
|
|
Net Sales /
Income from Operations |
1756.901 |
3947.208 |
|
2. |
Segment Results (Profit
before Interest and Tax) |
|
|
|
|
a. Steel Tubes
and Pipes |
246.485 |
545.827 |
|
|
b. Windmills |
20.635 |
30.767 |
|
|
Total |
267.120 |
576.594 |
|
|
Less:- Interest |
27.392 |
56.130 |
|
|
Profit before
tax |
239.728 |
520.464 |
|
3. |
Capital Employed (Segment Assets
- Segment Liabilities) |
|
|
|
|
a. Steel Tubes
and Pipes |
4442.403 |
4442.403 |
|
|
b. Windmills |
142.210 |
142.210 |
|
|
c. Unallocable |
(533.873) |
(533.873) |
|
|
Total |
4050.740 |
4050.740 |
Notes:
1) The aforesaid
results, as reviewed by the Audit Committee, were approved by the Board of
Directors in its meeting held on 29.10.2010.
2) Statement of
Assets and Liabilities
|
Particulars |
30.09.2010 |
|
Shareholders Fund |
|
|
a) Capital |
92.592 |
|
b) Reserves and Surplus |
3958.148 |
|
Loan Fund |
2550.999 |
|
Deferred Tax |
547.064 |
|
Total |
7148.803 |
|
Application of Fund |
|
|
Fixed Assets |
3683.668 |
|
Investments |
50.071 |
|
Current Assets Loans and Advances |
|
|
a) Inventories |
1064.035 |
|
b) Sundry Debtors |
1665.175 |
|
c) Cash and Bank Balances |
342.002 |
|
d) Other Current Assets |
- |
|
e) Loans and Advances |
1502.732 |
|
|
4573.944 |
|
Less: Current Liabilities and Provisions |
|
|
a) Liabilities |
1086.590 |
|
b) Provisions |
72.290 |
|
|
1158.880 |
|
Miscellaneous Expenditure (Not written off of adjusted) |
3415.064 |
|
Total |
7148.803 |
3) The Statutory
Auditors have carried out limited review of the above financial results.
4) Figures of Previous
year / quarter have been regrouped, wherever considered necessary to make them
comparable.
5) The company's
shares are voluntarily delisted from Regional Ahmedabad Stock Exchange Limited
with effect from 13.10.2010. However, the securities continued to be listed on
Bombay Stock Exchange Limited and National Stock Exchange of India Limited.
6) Status of
Investors Complaints / Queries: Opening > Nil, Received > 1 , Redressed
> 1, Pending > Nil.
WEBSITE DETAILS:
PROFILE:
Since its inception in 1985,
accepting challenges and ensuring customer delight has been the hallmark of Ratnamani. In just two decade, subject has grown to become a
multi-product, multi location public limited company providing total piping
solutions to a diverse range of industries.
Subject’s manufacturing facilities employ state-of-the-art technology to
produce a wide range of Stainless Steel Welded / Seamless Tubes and Pipes and
Carbon Steel Welded Pipes. The company caters to the niche markets of almost
all the emerging sectors like oil and gas, refineries, petrochemicals, process
industries, power plants and water distribution.
This has been made possible by continuous innovation and focused vision of the
management. Subject follows a
total quality approach and its products conform to the highest international
standards. The company’s credo of prosperity
through performance has ensured not only strong clientele but also
diversified clientele base comprising of major public, private and joint sector
companies, in respective segments.
Subject draws its strength from
technical excellence and highly trained, motivated manpower. The company’s
unflinching commitment to delight customer has ensured client loyalty.
Subject is a responsible corporate citizen. The company uses green power
and has a robust safety, health and environment policy. It regularly takes up
healthcare, education and poverty alleviation schemes as part of its social
commitment.
The company boasts of a strong growth record and its annual revenues are in
excess of Rs 3.5 billion (USD 76 million). Backed by technology, teamwork and
the enthusiasm of a young organization, Subject
is poised to become a Rs 6 billion (USD 130 million) company by 2006-2007.
MILESTONES
1985
Commenced production of Stainless Steel
Welded Pipes & Seamless Tubes, as a twin small-scale units.
1991
Established facilities for manufacturing
Stainless Steel Electric Fusion Welded [EFW] Pipes.
1993
Listed on Mumbai (BSE) & Ahmedabad
Stock Exchange (ASE)
1995
Commenced production of Submerged Arc
Welded [SAW] Pipes
1997
Received API 5L Monogramming License
1999
Commenced production of Stainless Steel
Tubes for Automobile Exhaust Systems.
2000
First
2001
Quality Management System accredited to
ISO 9002 Under Lloyd’s Register Quality Assurance (LRQA).
Addition of API 2B Monogramming License
2002
AD 2000 - Merkblatt W 0 Certification
Under RWTUV
Recognition as a well known Tube / Pipe
Maker Under IBR
2003
- Pressure Equipment Directive [PED]
Certification Under LRQA
- Approval from Nuclear Power Corporation of
India Limited for the Supply of Critical Instrumentation Seamless Tubes &
Primary Piping for Nuclear Reactors
- Up-gradation of ISO 9002 Certification to ISO
9001-2000 under LRQA
2004
- Delivered Duplex Stainless Steel Seamless
Tubes as per SA 789 / UNS 31803 and UNS 32205
- Officially Implemented Safety, Health &
Environment Policy [SHE]
- Enhancement of Current Capacity by
establishing new manufacturing facilities @ Kutch,
2005
Commenced manufacturing of Welded Cold
Drawn Duplex Steel Tubes as per SA 789 / UNS 31803 and UNS 32205.
Board of Directors:
Ratnamani has a board comprising of eminent individuals from diverse
fields. The board acts with autonomy and independence in exercising strategic
supervision, discharging its fiduciary responsibilities, and in ensuring that
the management observes the highest standards of ethics, transparency and
disclosure.
Our Directors are experts in the diversified fields of engineering,
human resource development, business strategy, finance and economics. They
review all information relating to significant business decisions, including
strategic and regulatory matters. Every member of the board, including the
non-executive directors, has full access to any information related to the
company.
Mr. Prakash Sanghvi - Chairman and Managing Director
Mr. Prakash Sanghvi has vast business experience in the metal industry.
He leads the core team that is driving the company's growth and transformation
from a company predominantly selling Tubes and Pipes to achieving its vision of
becoming a technology-led global engineering company.
Mr. Sanghvi has played a vital role in the company's evolution. He has
been the architect of the company's projects and expansion strategy. He has
helped create new platforms of growth for Ratnamani increasing shareholder and societal value
while decreasing the company's environmental footprint.
Mr. Jayanti Sanghvi - Whole Time Director
Mr. Jayanti Sanghvi is one of the key members of the core team
responsible for creation and setting up of Development Centres, Resources,
Staffing and Training, Facilities and Infrastructure Management and
Administration.
Mr. Jayanti Sanghvi is constantly focused on process improvements for
enhancing productivity.
Mr. Shanti Sanghvi - Whole Time Director
Mr. Shanti Sanghvi is a thought leader on marketing strategy and
customer related issues in
Mr. D C Anjaria – Director
Mr. Anjaria is an independent non-executive Director on the Board of the
company having stupendous experience in the field of international finance and
corporate finance. Mr. Anjaria is an MBA from IIM, Ahmedabad and has worked
with Citibank and UTI.
Dr. Vinodkumar Agrawal - Director
He is an independent non-Executive Director on the Board of the Company.
Mr. P M Mehta - Director
Mr. Mehta is an independent non-Executive Director on the Board of the
Company . He is Mechanical Engineer by qualification, has mammoth experience in
engineering industry, having spent his entire career in the leading engineering
corporate. M/s. Larsen and Toubro. He was an Executive Director on Board of
Larsen and Toubro. At the time of his retirement, he was in-charge of nine
different business units located all over the country. He is extensively
experienced in the area of modern technologies, and international businesses.
At the helm of the entire operations is the experience and able
direction of the people who make it all happen. Ratnamani acknowledges their
inspiring stewardship and indefatigable work.
PRESS RELEASE:
Ratnamani Metals and
Tubes attractive bet for investors
21 Jul 2008, 0419 hrs
IST, Santanu Mishra, ET Bureau
Crude oil prices have more than quadrupled in the past five years, and this has increased exploration and production (E and P) activities around the world. These activities have generated huge requirements for carbon steel pipes and stainless steel tubes.
Many domestic pipe makers are set to benefit from this trend. Ratnamani Metals
and Tubes is one such player which manufactures pipes and an array of stainless
steel tubes, used in industrial applications. The company’s strong financials,
growth plans and diversification strategy make it a good investment bet at the
current price level.
BUSINESS: 0
Ratnamani’s business can be categorised mainly into two segments — stainless
steel tubes for industrial applications and carbon steel pipes. Stainless steel
tubes are used by a number of industries like refineries, fertiliser,
pharmaceutical and power plants (both thermal and nuclear ), among others.
These are very critical applications and hence, require high quality levels.
Ratnamani is a market leader in this segment, with a market share of close to
40%. The second line of business constitutes electric resistance welded (ERW)
and submerged arc welded (SAW) pipes, which are used for oil and gas
transportation.
Most of the company’s carbon steel capacities are currently fully utilised. The
company’s strategy is to maintain a balance between the two lines of
businesses, with each contributing around 50% towards its topline.
FINANCIALS:
Ratnamani has strong financials compared to its peers in the pipe industry. The
company’s net sales have jumped 10-fold in the past five years, while its net
profit has surged by more than 40 times over the same period. In fact, the
company has never posted a loss in the past 14 years.
It ranks among the best within the pipe industry as far as the return on
capital employed (RoCE), return on net worth (RoNW) and operating margins are
concerned (refer to the adjacent table).
Ratnamani’s lower debt-to-equity ratio (close to 1) and higher interest
coverage ratio (more than 8) enable it to leverage its balance sheet for future
expansion plans. The company’s operating margin for FY08 shrunk by around 200
bps on account of Rs 270 millions mark-to-market notional forex hedging losses,
which are not core to its operation. The management doesn’t expect any such
losses for the current financial year.
GROWTH POTENTIAL:
The company plans to expand its capacity in modular phases. It plans to increase its horizontal SAW (HSAW) capacity by one lakh tonnes to two lakh tonnes by the end of the current financial year. Out of this, 150,000 tonnes of capacity will be commissioned by September this year, while the rest will come up by the end of FY09.
The company is also setting up a three-layer pipe coating line to provide a
one-stop solution (coated pipe) to its customers. On the stainless steel tubes
front, it plans to add 3,000 tonnes of capacity in the high-speed welded tubes
segment, which will be commissioned by September ’08. These expansion plans
will require a capex of Rs 900-1000 millions in the current financial year.
This will be funded through debt of Rs 200-300 millions, and the rest will come
from internal accruals. The company has a current order book of close to 80% of
its FY08 net sales. It will increase its order book, as and when its new
capacities come up.
VALUATIONS:
Ratnamani has diversified its business risk by making products which are used
in a wide range of industries. The company’s P/E and EV/EBITDA multiples are on
the lower side compared to its peers. The effect of its expansion plans will be
partly and fully visible in FY09 and FY10, respectively.
The company’s estimated EPS for FY09 and FY10 works out to Rs 128 and Rs 174,
respectively. At the current price level of Rs 675, this translates into
forward P/Es of 5.3 and 3.9, respectively. This provides a good upside
potential for investors with a horizon of 2-3 years.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.16 |
|
|
1 |
Rs.70.64 |
|
Euro |
1 |
Rs.58.68 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.