Rajratan Global Wire (RGWL) is one of the leading manufacturers of high carbon steel wire in India specializing in automotive tyre bead wire, high quality spring & rope wires on Wednesday reported a multi-fold jump in its consolidated net profit to Rs 219.2 million for the first quarter ended June 30, 2021. The company had posted a net profit of Rs 16.5 million during the corresponding quarter of last fiscal.

The Pithampur-based company's consolidated revenue from operations rose 181.96% during April-June 2021 to Rs 1,822.9 million, against Rs 646.5 million in the year-ago period.

According to Sunil Chordia, CMD, Rajratan Global Wire, despite FY22 starting off on a challenging note led by an impact from the second wave of Covid-19, the company delivered strong performance and growth.

"This was primarily driven by strong demand from  domestic tyre manufacturers as well as exports. Our timely expansion in India in FY20 (to 72,000 TPA) has started bearing fruits for us as we are aiming to increase the capacity utilisation levels over the current year and next year for the expanded capacity at Pithampur, Madhya Pradesh," he said.

Similarly, the company has now taken up capacity expansion in Thailand from 40,000 TPA to 60,000 TPA owing to increased traction in the region as well as increasing market share, he said.

"Post this expansion (expected by end FY22), Rajratan will become the second largest bead wire manufacturer in Asia outside China with a combined capacity of 120,000 TPA (for bead wire). Rajratan continues to be on the forefront of meeting the requirements of its customers, which has led to some of our key customers according Rajratan the prestigious Vendor Managed responsibility for some of their plants," Chordia added.

The company continued to widen its customer base in both domestic markets (India and Thailand) as well as export markets (USA & Europe). It has initiated efforts to set up a manufacturing capacity of an additional 60,000 TPA in Southern India (Tamil Nadu).

Shares of the company gained Rs 84, or 5%, to trade at  Rs 1,764.95.  The total volume of shares traded  was  2,068 at the BSE (2.12 p.m., Thursday).