The Company is engaged in the manufacturing of bead wire, a high-carbon steel wire utilized in the production of tires. Additionally, the Company produces drawn steel wire, commonly referred to as black wire, which finds applications in various industries such as automobile, construction, and engineering.
Q2 FY26 Earnings Results:
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Revenue from Operations: ₹295.61 crore, up 20.4% YoY and 19.4% QoQ from ₹247.55 crore in Q1 FY26.
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Profit Before Tax (PBT): ₹26.83 crore, up 8.9% YoY and 50.5% QoQ.
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Profit After Tax (PAT): ₹20.55 crore, up 7.9% YoY and 52.0% QoQ.
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Earnings Per Share (EPS): ₹4.05, up 8.0% YoY and 52.3% QoQ.
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Total expenses rose 21.7% YoY to ₹268.78 crore due to increased operational costs.
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Interest cost remained steady, with the company maintaining manageable debt levels.
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Operating margins contracted to 13.6% from 15.4% YoY, reflecting pressure from rising input costs.
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Margin pressure expected to persist, but company aims for volume growth and operational efficiency.
Management Commentary & Strategic Insights:
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Management emphasized strong demand from the tyre industry with ongoing volume growth.
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Focus on achieving 15% volume growth for FY26 with capacity expansion plans.
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Chennai plant aiming to break even soon, contributing to profitability.
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Strategic focus on premium automotive clients and diversification beyond lower-end segments.
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Investing in technology and process improvements to sustain margin stability amid cost pressures.
Q1 FY26 Earnings Results:
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Revenue from Operations: ₹247.55 crore, up 12.2% YoY.
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Profit Before Tax (PBT): ₹17.83 crore, down 12.3% YoY.
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Profit After Tax (PAT): ₹13.52 crore, down 11.3% YoY.
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EPS: ₹2.70, down from ₹3.00 YoY.
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Total expenses increased 14.6% YoY, driven by higher raw material and finance costs.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.