RAMA STEEL TUBES

LIMITED

Investor PresentationSeptember 2015

NSE Symbol: RAMASTEEL | BSE Code: 539309 | ISIN: INE230R01019CIN: L27201DL1974PLC007114 | www.fence-steeltubes.com

Rama Steel Tubes Ltd.(RSTL) - Incepted in the year 1974,It is one of the accredited organization dealing in manufacturing, supplying and exporting of steel pipes, steel tubes and fittings.

Headquater: New Delhi

Manufacturing facilities: 32 at Sahidabad and another plant (set up in April 2015) at Khopoli

Established brand name in steel tubes industry with t/o of Rs. 200cr/annum & strong sales networking force.

Also entered in international market with export of galvanised pipes. Its current exports tally around 30-35% of market sale.

Despite the stiff competition, RSTL has established itself at all levels of market, be it local, government procurement or export

Currently RSTL has been listed on National stock exchange & Bombay stock exchange (formerly listed on Delhi stock exchange)

M/s RST International Trading FZE {Registered at UAE(Dubai) in April-2015} is a wholly owned subsidiary company of RSTL having turnover of INR 70 millions from April-2015 to August-2015

Long term tie up with the Steel Authority of India for availability of raw materials

Additional income: Approx Rs.160 lacs annually from leased out of commercial properties owned by the company.

Rama Steel set up a wholly owned subsidiary company in Dubai underthe name and style of M/s RST International Trading FZE.

Company is doing business of trading in1. Basic steel products2. Basic non-ferrous metal products3. Building construction material4. Pipe & fitting goods &5. Industrial plant equipment & spare parts

Hired a highly experienced personnel in marketing and export of Steelproducts.

Dubai is a Strategic place to supply products to African countries.

Operations are presently spread over UAE, Sudan, Ethiopia, Ghana, Indiaand is contemplating to extend to European and other African countries.

Mr. Naresh Kumar Bansal (61 years)◦ The Managing Director of the Company◦ Graduate in law with more than 30 years of experience in the Industry of manufacturing of “Steel

Tubes”

Mr. Richi Bansal (35 years)◦ The Director of the company◦ B. Sc (Hons.) in Management from Bradford University, U.K. & internship from a reputed company

called BIE (Marketing & Advertising)◦ Exploring new avenues to augment the turnover of the company. The Company expects its turnover

to expand manifold under his able guidance and leadership.

Mr. Bharat Bhushan Sahny◦ Independent Director◦ Graduate in Commerce from Sri Ram College of Commerce, Delhi.◦ Held the position of Vice President and President in “DSE” and was instrumental in getting online

Trading started in “Delhi Stock Exchange” and also Chairman of “Investors Awareness Committee”

Mr. Rajendra Prasad Khanna◦ Independent Director◦ Qualified Electrical Engineer with a rich experience of more than 40 years in steel tubes industry

Ms. Hannya Dhir◦ Independent Director◦ Qualified Management Consultant having obtained post graduate degree in Commerce◦ Well versed in the field of finance and management

Our Vision

•To sustain our position as one of India’s valuable enterprise through

highest standard quality, creating greater value for India’s economy and our

stakeholders.

Our Mission

• To emerge as a leading manufacture in steel tube industry on the

strengths of our quality.

• To serve our customers by producing products that are symbols of

durable excellence.

• To add every possible value in the service in pursuit of a strong and long

term bonds with our customers.

The Company was awarded “Award for Export Excellence” by EEPC India in recognition of outstanding contribution in Engineering Exports for many consecutive years(from 2006-2012)

In The year 2009 The Company was accorded the status of “Star Export House” by Ministry of Commerce & Industry, Government of India on account of good volume of exports

The Company was awarded “Shri Janeshwar Mishra Export Award” by Export Promotion Bureau, Uttar Pradesh in recognition of performance in the field of engineering exports in the year 2009-10

The Company is certified as ISO 9001:2008 company by TUV SUD South Asia in the year 2012-13

By virtue of quality of products, RSTL has avail membership of FICCI,EEPC India and FIEO

RSTL has its well established 2 plants at Sahibabad(Ghaziabad) with capacity of 75000 MT p.a and 24000 MT p.a

In the year 2015 company has also established manufacturing unit at khopoli (Raigad, near Navi Mumbai) with installed capacity of 36000MT p.a.

Plant at Khopoli is near to port, due to which cost of transportation to the port reduces and makes export competitive.

This plant is strategically located to cater the demand of our products in various states like Maharashtra, Gujarat, Madhya Pradesh, Andhra Pradesh & Tamil Nadu can be catered.

Company is planning to increase its capacity at Khopoli plant from 36,000 MT to 2,40,000 MT p.a.

Sahibabad, Uttar Pradesh

Khopoli, Dist. Raigad, Maharashtra

ERW Galvanized Pipes & Tubes

◦ Pre-Galvanized Pipes & Tubes, Fence Pipes & Tubes and customised ERW Galvanised Pipes & Tubes

◦ Applications: Water Pipelines, Water Mains, Sewerage Systems , Agriculture and Irrigation, Deep Tube-Wells & Casing Pipes , Gas Pipe Lines, Cross Country Pipe Line, Oil Pipe Lines

ERW Black steel pipes & tubes

◦ Customised Black Steel tubes & pipes especially made for use in Water, Gas, Air & Steam

◦ Applications : Road Barriers, Barrier Gates, Parking Barriers, Steel Gates & Windows, Parks/Playgrounds, Parking Lots, Green Houses, etc

ERW Idlers Steel tubes

◦ Used for Belt conveyors

Scaffolding Pipes & Tubes

◦ Includes Steel Scaffold Tubes, black, 48.3 mm O.D., mild steel, continuous weld and 40 mm.

◦ Applications: Handrails, Columns, Posts, Casing, Fence, Sign poles,Bracing, Rollers, Towers, etc.

SWAGED POLES

◦ Includes Square / Rectangular Pipes & Tubes Hollow Section (RHS / SHS)s

◦ Applications: Light Poles, Traffic Light Poles, Street Light Poles

Structural Steel Products

◦ Specifically designed to suit the requirements of automobile industry

Hollow Section (RHS / SHS)

◦ Applications: Furniture industries & domestic applications, Automatic Chasis , Bus stands , Milk Booths, Scaffoldings, Furniture partition frame work, Pallets , Guard Rails , Staircases, Columns & Purlins, etc

Telecommunication, transmission towers and substation structures

◦ Includes 40M narrow base tower,60M narrow cellular base tower, tower for cellular system20 30UOM, roof top tower for cellular mobile system,40M tower for cellular system (upto 170kmph wind speed)

◦ Application: Telecommunication and transmission sector

Roll grooved tubes

◦ Mainly used for connecting pipes which are used for transport of water, solid air matter under rugged condition prevailing at construction sites

Steel Pipes

- Steel Pipes were traditionally used for transportation of water, liquids, oil and gases

- Lately steel pipes have found applications in newer areas like structural support systems

• India is among the fastest growing steel tubes and pipe manufacturers in the world with production estimated at about 10 million tonnes a year.

• The Indian steel pipes industry, comprising seamless, SAW and ERW pipes, addressed a vast global and domestic opportunity, as a result of which this industry aggressively expanded capacity.

• The Management of the Company following are the key growth driver among others:

Urbanization

About 31% of India’s population is estimated to be living in urban areas; this proportion is likely to rise to 49% by 2031, creating increased real estate demand and indirectly for steel pipes demand.

Power

India will have a natural gas pipeline grid running for 30,000 kms. connectingconsumption centers to fuel sources by 2017. Keeping these realities in mind,there are attractive opportunities for the pipes and tubes industry.

• Steel demand growth to start to improve from the second half of fiscal 2015-16, supported by a pick-up in consumption.

• India’s steel consumption to grow to 83 million tonnes by the end of 2015-16.

• The domestic steel demand is likely to grow at a faster pace in comparison of world steel market; expected to grow at a rate of 6.7% annually till 2016- 17.

• Government’s decision of setting up new ‘smart cities’ and redevelopment of airports will spur demand for our products.

• As per AIFA estimate, Indian auto industry will touch USD 30-40 Billion by 2015 and growth to be led by exports which will account for USD 20-25 Billion.

• As per AIFA estimates, global forging industry to grow at 9.73% for the period 2014-18.

Aviation Sector

India will be one of the fastest growing civil aviation markets in the world by 2020 witha passenger load of 420 mn in the Indian airport system as compared to 140 mn in2010. These will be aided by substantial investments in development of airports in tier-II cities as well as improvement of infrastructure in existing airports.

Solar and renewable energy

There are several schemes which are being added up to gear and transform this sector.As per one estimate this sector entails Rs.10,000 Crore capital expenditures in nearfuture paving way for great opportunity for steel tubes industry.

Transport Sector

With a growing population in India, demand for road transport would increase further by2020. While state highways are expected to link most districts in the country. Ministry ofRoad Transport and Highway’s decision to accelerate implementation of NationalHighways ensuring greater demand for steel tube products.

STRENGTH Diversified and right mix of products.

Reshuffling of its products and market to adapt to the changing market scenario.

Widespread presence in domestic and overseas markets.

Consistent R&D and product modification.

A visionary and committed management board.

Highly qualified dedicated team of professionals.

WEAKNESS High Logistic cost for Sahibabad plants.

Heavy cost of funds.

OPPORTUNITY Pro-development government policy.

Increase in government investment in infrastructure such as roads, railwaynuclear power, green energy (solar and wind).

Increased international interest in India’s growth story.

Due to cheap labour and skilled man power, India is becoming an automobilehub.

Low per capita consumption of steel and value added products in India.

The Company will get benefitted from various schemes and programsinitiated under ‘Make in India’, ‘100 Smart Cities’, ‘Metro & Mono Rails’,‘Bullet Trains Corridors’ etc.

THREATS Foreign exchange instability.

Fluctuation in raw material prices.

Change in government policies.

Equities &liabilities 31-03-2015 31-03-2014 31-03-2014

Shareholders fund

Share Capital 2,49,34,000 1,24,89,000 24,89,000

Reserve and Surplus 182043975 187864685 166548414

Sub total 20,69,77,975 20,03,53,685 16,90,37,414

(3) Non-Current Liabilities

Long-Term Borrowings 168472696 91401486 95837312

Deferred Tax Liabilities 2741743 6488427 8589945

Sub total 17,12,14,439 9,78,89,913 10,44,27,257

(4)Current Liabilities

Short-Term Borrowings 360942256 297545753 302464615

Trade Payables 23435319 74440013 54218482

Other Current Liabilities 190619834 69816573 64816231

Short-Term Provisions 8688950 6536166 6103546

Sub total 58,36,86,359 44,83,38,505 42,76,02,874

Total 96,18,78,772 74,65,82,103 70,10,67,545

Assets 31-03-2015 31-03-2014 31-03-2013

(1)Non-Current Assets

Fixed Assets 181876165 150695787 154709251

Non Current Investments 127359588 28633683 23763713

Long term loans and advances 11406380 96618821 79879421

Sub total 32,06,42,133 27,59,48,291 25,83,52,385

(2)Current Assets

Current Investments

Inventories 256173135 207181585 164715260

Trade Receivables 111333740 175786701 166046250

Cash and cash equivalents 74548448 22416377 21410003

Short-term loans and advances 199181316 65249149 90543646

Sub total 64,12,36,639 47,06,33,812 44,27,15,159

Total 96,18,78,772 74,65,82,102 70,10,67,545

Particulars 31-03-2015 31-03-2014 31-03-2013

Total Revenue 1,94,82,55,202 1,84,46,87,449 1,90,80,31,303

total expenses 1,87,28,91,434 1,76,17,56,579 1,82,00,16,163

EBITDA 7,53,63,768 8,29,30,870 8,80,15,140

Financial Costs 5,27,46,204 4,56,44,755 5,41,39,923

Depreciation and Amortization Expenses 2,26,17,564 1,77,43,377 1,78,65,721

Profit Before Taxes 86,70,896 1,95,42,738 1,60,09,496

tax expenses 18,05,877 30,96,437 49,34,191

Profit /(loss) for the period 68,65,019 2,13,16,271 1,10,75,305

Particulars Percentage No. of shares

Promoter and Promoter Group 73.95% 1104369

Indian 73.95% 1104369

Foreign 0

Public 26.05% 389031

Institutions 0

FII 0

DII 0

Non Institutions 26.05% 389031

Total 100% 1493400

With an age of more than 41 years the company Rama steel has established strong brand in the steel pipe industry in India as well as in international market (Especially in ERW segment)

The company is in expansion mode ◦ Company has set up 3rd plant of 36000 Mt p.a at Khopoli recently to carter the

increasing demand of steel tubes .◦ Company has also set up wholly owned company in Dubai for doing business of

trading of various steel products worldwide.◦ Company is targeting to build up 3,40,000 Mt p.a manufacturing capacity from all

units established in India

Growth is expected in Sales and profitability due to◦ Establishing and developing strategically the manufacturing unit of the company◦ Strong and well established sales and distribution force◦ Government initiative to revamping steel sector and also infrastructure sector (which

are supplier and consumer of tube products)◦ Developing trading unit at Dubai under highly qualified team.

Increase in Return on Equity(ROE) and Return on Capital Employed(ROCE) is expected due to◦ Since the increase company sales and profitability with same net worth◦ Current Manufacturing unit which are established in modernize manner which help

the company to achieve higher return on capital employed

For Investors Relations queries, please contact:

Mr. Naresh Kumar BansalManaging Directormd@ramasteel.com

Mr. Kapil DattaCompany Secretary

accounts@ramasteel.com

Except for the historical information contained herein, statements in thispresentation and the subsequent discussions, which include words orphrases such as "will", "aim", "will likely result“, "would", "believe", "may","expect", "will continue", "anticipate", "estimate", "intend", "plan","contemplate", seek to", "future", "objective", "goal", "likely", "project","should", "potential", "will pursue", and similar expressions of suchexpressions may constitute "forward-looking statements“. These forwardlooking statements involve a number of risks, uncertainties and other factorsthat could cause actual results to differ materially from those suggested bythe forward-looking statements. These risks and uncertainties include, butare not limited to our ability to successfully implement our strategy, ourgrowth and expansion plans, obtain regulatory approvals, our provisioningpolicies, technological changes, investment and business income, cash flowprojections, our exposure to market risks as well as other risks. TheCompany does not undertake any obligation to update forward-lookingstatements to reflect events or circumstances after the date thereof.

Thank You