Rama Steel Tubes Ltd (RSTL) has won a repeat order from Uttar Pradesh Power Corporation Ltd (UPPCL), the New Delhi-based company said in a stock exchange filing.
RSTL said that it has received a new order from UPPCL for the supply of 2,500 electric poles, amounting to around 580 tonnes. The order is valued at Rs.43.3 million (or Rs.4.30 crore), the filing said. This mandate was over and above a previous order placed by the same client for 7,000 electric poles worth 1624 tonnes.
These orders will further strengthen RSTL’s order book and credibility in the market, the release noted.
“Even in the past, RSTL has been associated with many State Corporations, and we celebrate our long-standing relationship with them. These orders with help us in strengthening our position and credibility in the market. These orders will also help us in achieving our targeted revenues at a slightly faster rate than what we had anticipated,” observed Naresh Kumar Bansal, Chairman & Managing Director, Rama Steel Tubes Ltd, in the filing.
According to a recent investor presentation filed by RSTL, poles and other structures supplied to the power and telecom sectors account for around 20 per cent of the company’s total revenue.
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Khopoli plant expansion
Earlier during December 2021, RSTL announced that it was undertaking a significant capacity expansion plan at its Khopoli plant in Maharashtra. Accordingly, the manufacturing capacity of this plant was being expanded by 30,000 tonnes per year. RSTL said that this enhanced capacity would be for special grade structural steel and high thickness tubes, used in infrastructure, automobiles and solar energy. The Rs.10-crore expansion plan is scheduled for completion during Q4 (January to March) of FY22.
Rama Steel Tubes has four manufacturing facilities spread over Shahidabad (Uttar Pradesh), Khopoli (Maharashtra) and Anantpur (Andhra Pradesh).
Featured photograph (source: ramasteel.com) is for representation only
