Rathi Steel and Power Ltd has issued a notice of shutdown of its steel melting shop from April 15, 2025, until two weeks thereafter. The shutdown was on grounds of operations by the company, which is among the leading companies in the Indian steel industry, although the specifics were not shared. The Ghaziabad facility, which has a melting capacity of over 90,000 tons a year, is a key supplier of stainless steel billets and TMT bars utilized in India's infrastructure and construction projects.
This is a time when Rathi Steel has been in the limelight due to its strong financial performance and high promoter activity. The firm recently experienced a 3.8% rise in its share price after the conversion of preference shares and rise in promoter stake, which indicates robust investor confidence. In spite of a 32% decline in Q3FY25 net profit, the firm reported a 199% increase in net profit for the nine months ended December 2024, which highlights its strength in a turbulent market.
The short-term closure will have minimal effect on production, but the firm's solid fundamentals and recent BIS certification for high-strength reinforcement bars set it up for sustained growth when operations return to normal.
Sources: MarketScreener, GoodReturns