Rama Steel Tubes was locked in an upper-circuit of 5% at Rs 455.15 after its step-down subsidiary, RSTIL signed an annual contract with Huihai Group, Hong Kong to supply 15,000 MT of specialty steel SKUs per annum in Nigeria.
RST lndustries (RSTIL) signed a new annual contract with Huihai Group, Hong Kong for procuring 15,000 million tonnes per annum (MTPA) with an exclusive arrangement for Nigeria. This contract has exclusive arrangement with Rama Steel Tubes (RSTL) specifically for procurement and supply of 15,000 MTPA of specialized steel SKUs in Nigeria.
Meanwhile, in a separate announcement, RSTL stated that it is setting up a manufacturing facility of 20,000 MTPA at its step-down subsidiary, RSTIL in Nigeria, West Africa.
RSTIL has already commenced the expansion exercise for setting up the proposed facility in Nigeria, the expansion is expected to be completed in two tranches and will be fully operational by August 2022 and expects to operate at full capacity by Q3 FY23.
This additional capacity is mainly aimed at expanding its current repertoire of SKUs to include roofing sheets. The total capital outlay for this expansion will be Rs 20 crore and will be funded through a mix of internal accruals and partially through debt.
The company's consolidated net profit surged to Rs 7.09 crore in the quarter ended September 2021 as against Rs 3.45 crore during the previous quarter ended September 2020. Sales rose 48.57% YoY to Rs 192.99 crore in Q2 FY22.
The scrip hit an all-time high at Rs 455.15 during intraday trade. Rama Steel Tubes is a manufacturer of steel tubes. The company has 20% exports rate, with a global presence in more than 16 countries.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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