What Caused Rajputana Stainless' Revenue to Drop Nearly 4% to Rs 909.8 Crore in FY24?
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Synopsis
Rajputana Stainless Limited has reported a revenue drop of nearly 4% to Rs 909.8 crore in FY24 as it prepares for an IPO. Despite the decline, the company managed to boost its net profit significantly. What factors contributed to this shift in financial performance? Dive into the details of Rajputana's fiscal year and future plans.
Key Takeaways
- Revenue decreased by 3.99% to Rs 909.8 crore in FY24.
- Net profit increased by 31.52% to Rs 31.62 crore.
- Total expenses reduced by 5.31% to Rs 873.18 crore.
- Employee benefits and finance costs rose significantly.
- IPO plans include 1.47 crore shares for fresh issue.
Mumbai, June 27 (NationPress) Rajputana Stainless Limited, which has submitted paperwork for an IPO involving 2.09 crore equity shares via a book-building method, has reported a revenue decline of roughly 3.99 percent for FY24. The company's revenue from operations was Rs 909.8 crore in FY24, a decrease from Rs 947.67 crore in FY23, as per its Draft Red Herring Prospectus (DRHP).
Total income also fell by approximately 3.7 percent to Rs 915.5 crore in FY24, compared to Rs 950.69 crore in the prior financial year (FY23).
Despite the decline in top-line revenue, the company successfully reduced overall expenses.
Total expenses dropped to Rs 873.18 crore in FY24 from Rs 922.11 crore in FY23, marking a decrease of about 5.31 percent.
This enabled Rajputana Stainless to enhance its net profit, which surged by nearly 31.52 percent to Rs 31.62 crore in FY24, up from Rs 24.04 crore in FY23.
Among significant expense categories, the cost of materials consumed experienced a slight dip of 0.77 percent to Rs 742.78 crore in FY24.
Conversely, employee benefits expense increased by 18.06 percent to Rs 21.44 crore, while finance costs soared by 27.18 percent to Rs 14.46 crore.
Depreciation and amortization costs rose by 20.23 percent, and other expenses increased marginally by 1.94 percent.
Additionally, for the nine-month period concluding December 31, 2024, revenue was reported at Rs 684.12 crore, with net profit for the same time frame being Rs 31.58 crore.
This IPO includes a fresh issue of 1.47 crore shares and an offer for sale (OFS) of 62.5 lakh shares. The price range and dates for the IPO have yet to be disclosed.
Nirbhay Capital Services Private Limited is the lead manager, while Kfin Technologies serves as the registrar for the offering.
The company intends to list its shares on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Founded in 1991, Rajputana Stainless specializes in manufacturing long and flat stainless-steel products.
It provides a diverse array of over 80 stainless steel grades, including billets, forging ingots, black and bright bars, and flats.
Point of View
We recognize that Rajputana Stainless' recent financial report illustrates both challenges and opportunities. The modest decline in revenue contrasts with a significant profit increase, reflecting the company's resilience and strategic cost management. As the IPO approaches, stakeholders should closely monitor these dynamics to assess the potential impact on the market.
NationPress
27/06/2025
Frequently Asked Questions
What are the main reasons for Rajputana Stainless' revenue decline?
The revenue decline of approximately 3.99% in FY24 is attributed to various market factors, though the company has successfully reduced its overall expenses, which positively influenced its net profit.
When is Rajputana Stainless planning to launch its IPO?
The exact dates for Rajputana Stainless' IPO are yet to be announced, but it will include a fresh issue of 1.47 crore shares and an offer for sale of 62.5 lakh shares.
How has Rajputana Stainless managed to increase its net profit?
Despite the revenue drop, Rajputana Stainless managed to increase its net profit by reducing total expenses, which fell by about 5.31%.
