Rajputana Stainless Ltd (RSL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to Rajputana Stainless Limited Q2 and H1 FY27 earnings conference call hosted by Go India Advisors. 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 the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I would now hand the conference over to Ms. Sana Kapoor from Go India Advisors. Thank you, and over to you, ma'am.
Sana Kapoor (Go India Advisors): Thank you, Muskaan. Good afternoon everyone, and welcome to Rajputana Stainless Limited's maiden earnings call to discuss Q2 and H1 FY27 financial performance. Today, we are joined by Mr. Shankarlal Mehta, Chairman and Managing Director; Mr. Yashkumar Mehta, Chief Executive Officer; Mr. Ambrish Bedadhe, Chief Financial Officer; Mr. Vishal Vijayvargiya, Accounts Head; and Mrs. Richa Parashar, Company Secretary and Compliance Officer. We must remind you that the discussion on today's call may include certain forward-looking statements and must be, therefore, viewed in conjunction with the risks that the company faces. May I now request Mr. Yashkumar Mehta to take us through the company's business outlook and financial highlights, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.
Yashkumar Mehta (Rajputana Stainless Ltd): Thank you so much, Sana. Hello everyone. I am Yash Mehta, the Chief Executive Officer of the company. Thank you so much for joining the Rajputana Stainless Limited earnings call for the second quarter and the first half of financial year 2021-'27. For those who are new to us, Rajputana Stainless makes stainless steel long products, and it is an integrated stainless steel plant, which is located in Halol, Kalol, Panchmahal. We melt, cast, roll, and finish stainless steel round bars, hexagonal bars, square bars, and it is all done under one roof. So, it is a product for which is made from scrap, and it is sold to all the B2B manufacturing companies all over the globe. We are present in India and across eight different countries. So, in total, we are present in over nine different countries. We manufacture over 48,000 tonnes of stainless steel every year with 36,000 tonnes of rolling capacity and 6,000 tonnes of bright bar capacity. Our speciality and what differs us is that we manufacture over 80 different grades of stainless steel in both austenitic, ferritic, martensitic, and duplex grades. We are a custom-made manufacturer of stainless steel and a solutions provider to all the stainless steel users who require different kinds of stainless steel. We do R&Ds, we do product development for all our customers, and that is how we are present in the most niche markets in the stainless steel world. Our every order is make-to-order by grade, by size, by shape, and by length. So, we deal in over 5,000 different SKUs. Our customers, which are manufacturers, they are mainly differed into different segments, which are like forging, engineering units, pipe units, seamless pipes and tubes. They serve oil and gas segment, automotive segment, aerospace segment, and defence segment. We have over 370 different customers, and our approvals include Aerospace 9100D
Yashkumar Mehta (Rajputana Stainless Ltd): the AD 2000-Merkblatt, IBR, BIS, and many more. We got listed in the NSE and the BSE in March this year, and we used our IPO proceeds to repay our debt. We officially became the debt-free company in in April. And our vision for the next 2 years is we want to increase our product range. We want to invest more and more into R&D and ensure that we provide high quality stainless steel products across the globe. We the quarter 2 revenue, if we speak about the quarter 2 revenue, the quarter 2 revenue grew about 33% from year on year to 360 crores. Our operating EBITDA grew by 38% to 33.4 crores with a margin of 9.3%, and our profit after tax grew by 79% to 23.7 crores. For the first revenue was 666 crores and the PAT stood at 43.9 crores, up by 80%. We also managed to make as much 88% of the money that we made in the entire financial year of 2025-'26. We started the second-half with an order book of about 500 crores, which includes over 80 crores of orders in aerospace and defense. I would love to have some questions from you guys, if you want to know a lot more about the company. Thank you so much.
Moderator: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. Participants may press star and one to ask questions.
Moderator: The first question is from the line of Shreyash Jain from Genuity Capital. Please go ahead.
Shreyash Jain (Genuity Capital): Yes. Hi. So, my question was regarding Could you please share the production and sales volume for Q2? And what was our capacity utilization across the melting, rolling, and finishing facilities? Could you please share these numbers?
Yashkumar Mehta (Rajputana Stainless Ltd): Our capacity utilization. Hello?
Shreyash Jain (Genuity Capital): Yeah, yeah.
Yashkumar Mehta (Rajputana Stainless Ltd): Yeah. So, our capacity utilization was over 99%, which has been continuous over the last past 2 years. We have been fully utilizing our entire capacity. However, we have introduced more and more grades into the segment, which has ensured that the revenue of the company grows. So, if we were making a commodity product, we moved towards the specialty products, which were much more costlier in nature, which ensured that our revenues increased. Our quarterly revenue in the first year of first year of 2006 '26-'27 was Rs. 306 crores, which increased by 70 17% to Rs. 360 crores. This is primarily due to the increase in increase in the quality products that we've produced. So, that is the primary reason for which our revenues have increased. Our capacity utilization for stainless steel billets have been 99%. For the rolled products, it has been 99.45%. And for the bright bars, we've reached about 60% of the capacity utilization.
105 more turns of this transcript: log in to Stocksigma to read the full call.