Rajratan Global Wire Ltd (RAJRATAN) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, you are connected for the conference call of Rajratan Global Wires Limited. Please stay connected, the call will begin shortly. Ladies and gentlemen, you are connected for the conference call of Rajratan Global Wires. Please stay connected, the call will begin shortly.
Moderator: Ladies and gentlemen, good day and welcome to the Rajratan Global Wires Q2 FY '27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded.
Moderator: I now hand the conference over to Mr. Sailesh Raja from 360 ONE Capital. Thank you, and over to you, sir.
Sailesh Raja (360 ONE Capital): Yeah, good evening Swapnali. Thank you for joining us for Rajratan Global Wire Limited second quarter of FY27 earnings conference call. During this call from the management side, we'll be hearing from Mr. Sunil Chordia, Chairman and Managing Director, Mr. Hitesh Jo-, Hitesh Jain, CFO Rajratan India, and Mr. Pranay Jain, CFO Rajratan Thailand. I would now like to turn the call to Sunil sir for the opening remarks followed by the Q&A. Sir, you may begin now. Yeah.
Sunil Chordia (Rajratan Global Wire Ltd): Yeah. Good evening all dear shareholders. Very happy to connect with all of you today. You know, we are in very encouraging times for Rajratan. Our earnings are growing faster than revenue. It is led by operational improvement, higher volumes led by higher utilization rates in Chennai as well as in Thailand. Our operating margins are moving in the right direction. In a manufacturing business exposed to raw material prices, product mix, and capacity utilization, our ability to deliver these margins is meaningful and will only improve as this pressures you know, changes. Today, Rajratan is amongst top two players outside China and amongst top five players including China. This says a lot about how we have continued to focus on making ourselves a force to reckon with in the domestic as well as global bead wire industry. Our Chennai plant expansion to 60,000 tons is on track and should be completed in the current quarter. We are almost full capacity utilization in the initial 30,000 tons capacity we have installed, which we had installed in the first phase and now expanding it to 60,000 tons. Our debt also, you know, debt-to-equity also is comfortable. 0.6 is the ratio, which indicates a healthy balance sheet. This is also visible in our cash flows. In September, we have generated positive operating cash flow in standalone as well as consolidated business. And you know, so overall we are very optimistic for the remaining two quarters of this year as well as at least 2 to 3 years we think that Rajratan will continue to grow at this pace. So, and now very happy to answer your questions. Yeah.
Moderator: Thank you, sir. We will now begin with a question and answer session. Anyone who wishes to ask a question may press "*" and then "1" on the touchtone telephone. If you wish to remove yourself from the question queue, you may press "*" and then "2". Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all the participants, you may press "*" and "1" to ask a question. We will take the first question from the line of Arnav Sakhuja from Ambit Capital. Please go ahead.
Arnav Sakhuja (Ambit Capital): Hi. Thank you for taking my questions. So, my first question is that you know, we mentioned in our presentation that we're planning a 50,000 ton capacity addition in Thailand. So, what is the broad timeline of this?
Sunil Chordia (Rajratan Global Wire Ltd): Yeah, we, as already told you, we are running at full capacity, almost 100% capacity in Thailand and we are refusing customers locally also. Some of the Chinese companies who buy from us and we are not able to supply to them. So, it is mandatory for us to now expand in Thailand. So, maximum it will take 1 year, okay? So within next 3 to 4 quarters, this capacity will be up and running.
Arnav Sakhuja (Ambit Capital): Right. And you know, still focusing on our Thailand business, we saw a strong improvement in the realization at around 97.5 thousand rupees per ton. So, what drove this improvement in realization for Thailand?
Sunil Chordia (Rajratan Global Wire Ltd): I don't think your numbers are correct, but broadly what you're saying is,
Sunil Chordia (Rajratan Global Wire Ltd): we are getting more approvals from major customers, other multinational clients and more volume will be going to them in the current quarter and next quarter and also the export from Thailand is also improving. So all this will improve the performance of Thailand. And that is why the capacity is for the capacity is planned and with that capacity, our cost will further come down. So, going down the line for next two, three years, we are very bullish on our Thailand business and performance.
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