Q3 Results: Rama Steel Tubes net profit rises to Rs 9 crore

Rama Steel Tubes Ltd (RSTL) has posted a rise of 14 per cent in its consolidated net profit to Rs 9 crore during the December quarter, aided by a fall in expenses.

It had clocked a net profit of Rs 7.80 crore during the October-December quarter of the preceding 2022-23 financial year, the steel pipes maker said in an exchange filing on Wednesday.

The company's total income fell to Rs 265 crore over Rs 355.94 crore a year ago.

Its expenses trimmed to Rs 254 crore from Rs 347.59 crore in the third quarter last fiscal.

The company further said its "board has decided to rescind the proposal for Scheme of Arrangement as proposed for amalgamation of Lepakshi Tubes with Rama Steel Tubes which was considered and approved on February 14, 2022." 

It was discussed that post covid, the market conditions have undergone drastic changes, and due to these volatile market conditions and changes in the steel industry the management of both applicant companies came to the conclusion that the two companies will now be at a better competitive advantage working as two separate entities, the company said.