Major Expansion Plans To Maximise Shareholder Value And Returns
RCI Industries & Technologies Ltd head quartered at Delhi is one of the leading companies engaged in the sphere of offering and exporting Copper items such as Copper Wires which include Annealed Copper Wire, Bunched Copper Wires ropes and copper ingots which are used in different electrical and industrial applications.
The company has state of the art manufacturing set-up at Baddi (H.P.) coupled with latest machinery and equipment.
A major expansion plan in order to replace existing old as well as installation of new plant & machinery to enhance the capacity is F.Y. 2016-17.
RCI has raised equity capital of ₹11.5 cr at cash price of ₹40 per share in the year 2013. RCI migrated to main board on 12th Dec 2016.
FOCUSED BUSINESS GROWTH PATH
Organic Growth Path: As a part of organic growth the company proposed to increase capacity enhance 3000 MT to 7000 MT P.A. resulting in sales turnover to the tune of ₹280 Crores P.A.
On Inorganic Front: Company has acquired business of M/s Devi Metal Technologies, partnership firm engaged in the manufacturing of copper, brass, stainless steel strips/sheet/coils. The unit is having state of art machinery and infrastructure to manufacture and process 3000 MT of copper/ brass in a year which comes to ₹120.00 Crs. based on an average price of copper at
1. The Unit is having good infrastructure and facilities to cater to the wide array of customer’s requirement.
2. The customers of the unit includes name such as Havells India Ltd., Supreme Auto Industries etc. The unit is located in Baddi (H.P.) in an area of 9828 sq. mtrs. owned by the firm.
3. The unit has been taken over w.e.f. 01.04.16 and become a unit of RCI Industries & Technologies Limited and named as “RCI Strips (A Unit of RCI Industries and Technologies Limited)”.)
RCI Industries & Technologies Limited (RCI) reported more than estimated results for 4QFY17 and FY17 with Topline for the quarter increasing by 15% Y-O-Y and 43% Q-O-Q to ₹5,445 mn.
EBITDA grew significantly by 232% Y-O-Y to ₹281 mn (₹85 mn), EBITDA Margins expanded by 336 bps to 5.15%. PAT for quarter increased by 293% Y-O-Y to ₹228 mn (₹58 mn), PAT Margins expanded by 296 bps to 4.2%.
For full year FY17 the Company reported Total Income of ₹17,371 mn (₹12,710 mn) an increase of 37% Y-O-Y, EBITDA grew by 85% to ₹546 mn (₹296 mn) and PAT surged by 140% to ₹358 mn
Commenting on this development, Mr Rajiv Gupta, Chairman & MD, RCI Industries & Technologies Ltd. said, “I am happy to share with you that in line with our strategy we have continued to focus on profitable growth through a shift from trading to manufacturing.
The year 2016 has been a turning point for our Company on many counts. The most important of these was start of the successfullycompleted acquisition of M/s Devi Metal Technologies, a manufacturer of flat products copper strips, foils, coils & sheets in Baddi, Himachal Pradesh. This development has already made significant impact in the revenues for FY17 and we will see the full impact of the same once our capacity expansion is complete during the course of the year.
Our Company has continued to maintain its strong position in the trade and manufacture of copper products. Our ability to offer a complete portfolio of flat and round products in copper, brass and to a small extent in stainless steel and special alloys has made us a preferred partner with our customers. The focus of the Company will continue to deliver value to our clients; to contribute to the manufacturing drive of the nation; give career & growth opportunities to our employees and grow profitability ultimately leading to maximization of shareholder value & return”.