Rajratan Global Wire Limited

Hitesh Jain

CFO, RAJRATAN INDIA

Yashovardhan Chordia

DIRECTOR, RAJRATAN THAILAND

Pranay Jain

CFO, RAJRATAN THAILAND

Sailesh Raja

BATLIVALA & KARANI SECURITIES INDIA PVT. LTD.

INR 2

areholders. In view of this strong performance, the Board of Directors have approved a dividend of INR 2 per share for the year. So this generally I wanted to talk about what we discussed in the Board. A

rs,

stion. So if I look at the gross margins per tonne and EBITDA per tonne over the last five, six years, you guys have done amazingly well. And now we are seeing -- but that was for bulk of that period, s

90%

version, our cost of making bead wire has drastically reduced. And when we use that capacity up to 90%, 95%, the cost further goes down. The variable cost also goes down along with the fixed cost. So y

95%

on, our cost of making bead wire has drastically reduced. And when we use that capacity up to 90%, 95%, the cost further goes down. The variable cost also goes down along with the fixed cost. So you ar

20%

half back, that Chinese tyres got anti-dumping in India. So the tyre capacities were increased by 20%. We have mentioned in our presentation to shareholders and we continue to see the growth of tyre m

7%

mentioned in our presentation to shareholders and we continue to see the growth of tyre market by 7%, 8% CAGR. That is how we are getting information from our customers. So that is the growth in Indi

8%

tioned in our presentation to shareholders and we continue to see the growth of tyre market by 7%, 8% CAGR. That is how we are getting information from our customers. So that is the growth in India. A

3%

tomers don't change suppliers overnight, at least for the price reasons, because bead wire is only 3% of their product cost, right? And it has taken us long years to get to this position. So if any di

25%

ded capacity in Thailand will be used, right. And that is how we are targeting additional sales of 25% in volume. Sanjay Shah: In Chennai we are setting up 60,000 tonnes capacity. So it will be done

35%

upplying only 20% to the Thailand market with the added capacity, our aim is to immediately target 35% to 40% of market share. We are the only domestic producer of bead wire in Thailand and with the lo

40%

g only 20% to the Thailand market with the added capacity, our aim is to immediately target 35% to 40% of market share. We are the only domestic producer of bead wire in Thailand and with the logistics

50%

the export market. The third part is will we export from Chennai? Definitely, yes, our target is 50% of volume or at least 40% volume of the Chennai capacity should be exported to Southeast Asian cou

“So can you comment on your EBITDA per tonne and gross margin per tonne going forward?”

“What's the situation in Thailand, how much pass through is being allowed where, and going forward what's your sense?”

“So if you can break that down and going forward again from an operational point of view, how do you see these margins going forward?”

“So it will be very difficult to give you exact numbers that how much has come from what action.”

“So with the added capacity coming in, in the next two, three months, it will be more easier for us to push volumes for bulk supply to these customers.”

“So we will be doing some -- we'll be selling some patented wire, which is a raw material for aluminium cladded wire manufacturer.”

“We have mentioned in our presentation to shareholders and we continue to see the growth of tyre market by 7%, 8% CAGR.”

“Thailand will not have the extra capacity to export because we are selling more material in the local market, which was the target.”

“We are making a business plan to grow in volume.”

“but definitely will grow in volume, both in India and Thailand.”

Sunil Chordia

47

Yashovardhan Chordia

14

Manan Shah

11

Sunil Jain

5

Anika Mittal

4

Alisha Mahawla

4

Devansh

4

Agastya Dave

3

Sanjay Shah

3

Anurag Patil

3

Agastya Dave

Ladies and gentlemen, good day and welcome to the Q4 FY „22 Earnings Conference Call of Rajratan Global Wire Limited hosted by Batlivala & Karani Securities India Private Limited. 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. Please note that this conference is being recorded. I now hand a conference over to Mr. Shailesh Raja from Batlivala & Karani Securities India Private Limited. Thank you and over to you, sir. Yes, thanks Rutuja. Good evening, all and thank you for joining us for Rajratan Global Wire fourth quarter of FY „22 earnings conference call. So during this call from the management side, we'll be hearing from Mr. Sunil Chordia, Chairman and MD, and Mr. Yashovardhan, Director and Mr. Pranay Jain, CFO, Rajratan Thailand and Mr. Hitesh Jain, CFO, Rajratan India. So I would now like to turn the call to the Chairman for the opening remarks followed by Q&A. Sir, you

Sunil Chordia

Second question is on the expansion side. Any further updates, I'm just going through the press release, you have mentioned something, but if you have anything further to add that would be enough. Thank you very much, sir. Yes. Thank you, Agastya. You have asked everything. So let me tell you, yes you have seen the expansion in margin, but it has not come by only charging higher price to customer, it has come because of a lot of internal work we have done. We had expanded our capacity in India two years back, which has resulted into a very good quality, which has -- we have put up the world's biggest bead wire line. So our cost of conversion, our cost of making bead wire has drastically reduced. And when we use that capacity up to 90%, 95%, the cost further goes down. The variable cost also goes down along with the fixed cost. So you are seeing the result of all that. And when you make good quality, you cater bigger quantity to better customer. You make better product where the prices

Agastya Dave

Thank you very much and completely understandable Sunil ji again, I must say amazing performance. The execution has been amazing and Yash same thing for you the Thailand performance has been like absolutely amazing.

Sunil Chordia

Yes. So this used to be my question 18 months back that when they would come at par, and you guys have brought it in 18 months. Because Thailand has utilized capacity almost to 95% in the second half of the year. Now Thailand is increasing its capacity two 60,000 tonnes this year, and you'll see further improvements.

Sunil Chordia

Thank you. The next question is from the line of Anika Mittal from Nvest Research. Please go ahead. Yes. Sunil, sir, once again heartiest congratulations on the wonderful set of results. So we are tracking this company for a long period of time now. So you stay committed to what you commit and then you deliver as well. So thanks for that. So it is really boosting our confidence on the company. Sir, my question is on very generic side, like my stepping back, and then thinking like the way that value migration is happening in terms of the automatable industry, right? Like electric vehicles and stuff. So are we seeing any threats in terms of the product alternates that is available or anything like that, which you are seeing and maybe you are working towards it which can add value to you. So any thoughts on that? Yes, there is a big change happening in automobile. World is moving towards electric vehicles, but we are not seeing any change in the tyre, tyre will continue to be there, wheth

Anika Mittal

Okay. Okay. So sir, another question I saw in your note press release, that the Thailand entity has got all the approvals and stuff. So is it -- are you referring to the expansion that you are currently working on or what is this approval for?