Rolex Rings rallies 11%, hits record high on strong demand outlook

Rolex Rings said the company is witnessing a strong demand pull across domestic as well as export markets, especially in industrial rings and automotive exports.

Shares of Rolex Rings rallied 11 per cent to Rs 1,477 on the BSE in Wednesday’s subdued trade on the back of strong demand outlook.

The stock of the auto components & equipments maker was trading at its highest level since listing on August 9, 2021. With today’s rally, the stock is currently trading 64 per cent higher from its issue price of Rs 900 per share.

At 01:06 pm; Rolex Rings was up 7 per cent at Rs 1,430, as compared to the flat Sensex benchmark. 

Rolex Rings is a manufacturer and supplier of hot rolled forged and machined bearing rings, and automotive components for two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles, electric vehicles, industrial machinery, wind turbines and railways, amongst other segments.

The company also supplies its products to some leading bearing manufacturing companies, tier-I suppliers to global auto companies and some auto original equipment manufacturers (OEM). The client base of Rolex Rings consists of leading global bearing manufacturers viz. SKF, Timken, Schaeffler, NEI & NRB Bearings.

While announcing the January-March quarter (Q4FY22) earnings on May 23, 2022 Rollex Rings said the company is witnessing a strong demand pull across domestic as well as export markets, especially in industrial rings and automotive exports.

The company continues to witness strong order-wins as well as implementation of previously won programs; rapidly expanding across European and Latin American plants of a leading bearing company. It said it has completed installation and is in the process of getting final regulatory consents for 4.2MW of ground mounted solar and planning to commission additional 12MW in ground mounted solar by end of 2022.

Meanwhile, in Q4FY22, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 46 per cent year on year (YoY) to Rs 72 crore from Rs 49 crore in Q4FY21.

EBITDA margins improved by 140 bps to 24.4 per cent from 23.0 per cent. Total revenue grew 37 per cent YoY at Rs 295 crore. Profit after tax, however, remained flat at Rs 39 crore, due to higher tax outgo.