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Key Points

Rajputana Stainless reported a 4% revenue decline in FY24, dropping to Rs 909.8 crore. Despite the dip, the company improved net profit by 31.5% by reducing expenses. The IPO-bound firm plans to list on BSE and NSE with a fresh issue of 1.47 crore shares. The company specializes in manufacturing over 80 stainless steel grades.

Key Points: IPO-Bound Rajputana Stainless Sees 4% Revenue Drop to Rs 909.8 Crore in FY24

  • Revenue falls 4% to Rs 909.8 crore in FY24
  • Net profit jumps 31.5% to Rs 31.62 crore
  • IPO includes fresh issue of 1.47 crore shares
  • Company manufactures 80+ stainless steel grades
2 min read

IPO-bound Rajputana Stainless' revenue drops nearly 4 pc to Rs 909.8 crore in FY24

Rajputana Stainless reports 4% revenue decline in FY24 but boosts net profit by 31.5% ahead of its IPO launch.

"Despite revenue dip, Rajputana Stainless cut expenses by 5.3% to raise net profit by 31.5% in FY24 – DRHP Filing"

Mumbai, June 27

Rajputana Stainless Limited which filed paper for an IPO comprising 2.09 crore equity shares through a book-building process has reported a decline of approximately 3.99 per cent in revenue in FY24.

The company’s revenue from operations stood at Rs 909.8 crore in FY24, down from Rs 947.67 crore in FY23, according to its Draft Red Herring Prospectus (DRHP).

Total income also slipped by around 3.7 per cent to Rs 915.5 crore in FY24, compared to Rs 950.69 crore in the previous financial year (FY23).

Despite the dip in top-line figures, the company managed to cut down on overall expenses.

Total expenses fell to Rs 873.18 crore in FY24 from Rs 922.11 crore in FY23, a decrease of about 5.31 per cent.

This helped Rajputana Stainless improve its net profit, which rose by nearly 31.52 per cent to Rs 31.62 crore in FY24, up from Rs 24.04 crore in FY23.

Among major cost heads, the cost of materials consumed saw a slight dip of 0.77 per cent to Rs 742.78 crore in FY24.

However, employee benefits expense rose by 18.06 per cent to Rs 21.44 crore and finance costs jumped by 27.18 per cent to Rs 14.46 crore.

Depreciation and amortisation expense increased by 20.23 per cent, while other expenses rose marginally by 1.94 per cent.

Meanwhile, for the nine-month period ended December 31, 2024, revenue stood at Rs 684.12 crore, while net profit for the same period was Rs 31.58 crore.

This includes a fresh issue of 1.47 crore shares and an offer for sale (OFS) of 62.5 lakh shares. The IPO price band and dates are yet to be announced.

Nirbhay Capital Services Private Limited is the book-running lead manager, and Kfin Technologies is the registrar for the issue.

The company plans to list its shares on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Rajputana Stainless, incorporated in 1991, manufactures long and flat stainless-steel products.

It offers a wide range of over 80 stainless steel grades, including billets, forging ingots, black and bright bars, and flats.

- IANS

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Reader Comments

A
Amit K.
Interesting numbers! Revenue down but profits up shows good cost control. Steel sector is cyclical though - hope investors consider long-term prospects before jumping into this IPO. The employee cost increase is concerning 🤔
P
Priya M.
As someone from Rajasthan, I'm proud to see our local companies going for IPOs! But 31% profit growth on falling revenue seems unsustainable. Hope they disclose more about their expansion plans in DRHP. #MakeInIndia
R
Rahul S.
Finance costs up 27% is a red flag 🚩. With interest rates likely to stay high, this could eat into future profits. Maybe wait for few quarters post-listing before investing. Steel demand is good but competition is fierce!
S
Sneha T.
Their product range is impressive - 80+ grades! But with China dumping cheap steel, how will they maintain margins? Government should impose stricter anti-dumping duties to protect domestic players like Rajputana.
V
Vikram J.
Cost cutting can only take you so far. Need to see their revenue growth strategy - are they focusing on exports? Domestic infrastructure projects? The IPO prospectus should clarify this. Steel is backbone of development!
N
Neha P.
Established in 1991 and only now going public? Must be family-owned business. Hope they improve corporate governance standards to attract institutional investors. Retail investors be careful - steel stocks can be volatile!

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