Rajkot, 18^th April, 2024: Rajoo Engineers Limited (BSE: 522257), amongst leading plastic extrusion machine manufacturers in India, with nearly 38 years of “excellence in extrusion” in the industry, announced its audited financial results for the fourth quarter and year ended 31st March 2024. These financials are as per the IND AS accounting guidelines

Key Consolidated Financials (Rs. In Crore):

Performance Highlights – For the Fourth quarter ended 31^st March 2024

• Revenue from operations for the quarter was Rs. 52.68 crore in Q4 FY24, as against Rs 71.43 crore in Q4 FY23, a YoY decrease of 26.26%. This was mainly due to delay in balance payment and lifting of machines by customers, since lead time of the order execution ranges from 4−9 months and can exceed 9 months in some orders.
• EBITDA (excluding Other Income) was at Rs. 8.96 crore in Q4 FY24 as against Rs. 6.47 crore in Q4 FY23, increase of 38.45% YoY due to higher capacity utilization and improvement in operational efficiencies during the current quarter.
• EBITDA Margin was at 17.02% as against 9.06%, YoY increase of 796 bps.
• Profit after Tax stood at Rs. 7.08 crore in Q4 FY24 compared to Rs. 5.39 crore in Q4 FY23, YoY increase of 31.35%.
• PAT Margin was as 13.45% as against 7.55%, YoY increase of 590 bps.

For the year ended 31^st March 2024

• Revenue from operations for the year ended was Rs. 197.35 crore in FY24, as against Rs.

159.79 crore in FY23, a YoY increase of 23.51%, on account of intensive efforts by a larger sales team and entry into new territories, coupled with revived demand for sheet extrusion lines and thermoformers

• EBITDA (excluding Other Income) was at Rs. 26.68 crore in FY24 as against Rs. 14.02 crore in FY23, increase of 90.35% YoY on account of increased in sales, higher capacity utilization and improved operational efficiencies
• EBITDA Margin was at 13.52% as against 8.77%, YoY increase of 475 bps. A conscious standardization of products helped optimize raw material and other operating costs.
• Profit after Tax was Rs. 21.01 crore in FY24 compared to Rs. 11.49 Crore in FY23, YoY increase of 82.86%.
• PAT Margin was 10.65% as against 7.19%, YoY increase of 346 bps.

Recent Developments during the year:

• Developed India’s first ever 9 layer blown film line for recyclable barrier film

and displayed at Plastfocus 2024

• Executed high output sheet extrusion system at Cosmo Films and Berry Global Inc.

·           Strategic Land Acquisition

ü Company acquired 28,000 sq. ft of three industrial plots adjoining to the factory in Rajkot

ü This strategic prime location would streamline operations and also provide ample opportunities for future development and efficiency improvements

·           Proposal for Buyback of equity shares of the Company

ü Company had approved a proposal of buyback up to 9,42,300 (Nine Lakh Forty Two Thousand Three Hundred Only) fully paid−up equity shares of the face value of Rs. 1/− each (representing 1.53% of the total number of equity shares in the paid−up equity capital of the Company as on March 31, 2023) at a price of Rs. 210/− (Rupees Two Hundred and Ten only) per equity share payable in cash for an aggregate consideration not exceeding Rs. 19,78,83,000/− (Rupees Nineteen Crore Seventy Eight Lakhs Eighty Three Thousand only), excluding expenses incurred or to be incurred by the Company.

·Rajoo Engineers’ Managing Director, Ms. Khushboo Doshi, Honored with

Entrepreneurs Award

ü Received Entrepreneurs Award for her achievement as the Icon for New Generation Entrepreneurs

·Completion of Extinguishment of 26,176 fully paid-up equity shares of Rs. 1/- each of Rajoo Engineers Limited, bought back at a price of Rs. 210 per Equity Share through the “tender offer” on a proportionate basis.

Management Comment:

Commenting on the Company’s performance, Ms. Khushboo Chandrakant Doshi, Managing Director, Rajoo Engineers Ltd said:

“We have closed the last quarter of FY24 on a strong note in terms of our operational efficiencies. During the fourth quarter, we registered a revenue of Rs. 52.68 crore. EBITDA and PAT grew 38.45% and 31.35% YoY to Rs. 8.96 crore and Rs. 7.08 crore, respectively. While delays in product lifting & dispatches hampered the quarter’s revenue, our intensive efforts bolstered by a larger sales team, to explore new territories helped increase revenue during the year. A revival in demand for sheet extrusion lines and thermoformers also helped boost growth. Improvements in capacity utilization & other operational efficiencies also helped improve margins.

This resurgence coincides with encouraging global capital expenditure trends within the industry. Over the past 18 months, the company has experienced a substantial uptick in both inquiries and orders, attributing to a surge in revenue during FY24. This positive momentum underscores the effectiveness of the company’s strategic initiatives and highlights its ability to capitalize on emerging opportunities in the market. 

As we move forward, we strive to continue our growth momentum through robust product offerings and a strong market position. With a positive outlook for both domestic and export markets, we are confident in securing substantial orders from high−growth regions, aligning with our expectations.

Rajoo Engineers remains steadfast in sustaining its growth trajectory and reinforcing its market presence. We are assured that our unwavering dedication to quality, innovation, and customer satisfaction will persist as the cornerstone of our achievements. I would like to thank each member of the Rajoo family, as well as our Clients, Creditors, Banks, Financial Institutions, and all other Stakeholders. Their faith in us and support extended makes it easier for us to strive and excel.”