Due to the geopolitical issues in Europe that affected the demand overall, Rajratan Global Wire experienced a decline in business in Thailand, resulting in the company falling short of its volume targets.
Speaking to CNBC-TV18, Sunil Chordia, CMD of the company stated that the business in Thailand saw a hit in both market share and volumes in the fourth quarter of the previous fiscal year.
In fact, their business was in Thailand last year was lesser than the year before thus presenting a challenging time as this is one of the important geographies for the company. The last quarter was the worst for the Thailand business, with margins falling below 10 percent.
“Thailand, last quarter was the worst. The overall EBITA margin for the year was 15 percent but last quarter was below 10 percent and also the volumes were a lowest. we have taken some corrective measures. Now for current quarter and the visibility for the year is very positive,” Chordia said.
Chordia also talked about the company’s expansion plans. European purchases have gone up, and the company is targeting a topline of Rs 1,100 Cr in FY24.
“Geopolitical problem has also become like normal. Today whatever it has affected, it has come to a standstill situation. So European purchases have gone up, we are able to export some quantities, and our customers are also able to export bigger quantities to Europe and America,” he added.
Chordia expects to see a 15 percent EBITDA margin in Thailand business and for India around 20 percent.
When asked about the blended consolidated margin, Chordia said that they expect it to be 18 percent which is a positive sign for the company.
They are also planning to start production from their Chennai unit by mid-year. The guidance for their growth is based on new approvals, where work has already started.
