Bansal Wire Inds

Bansal Wire Industries Limited delivered a robust performance in Q3 FY25, with revenue growing 53% year-on-year to ₹925 crores. This strong top-line growth translated into exceptional profitability, as EBITDA surged 99% to ₹73 crore and net profit increased by 172% to ₹42 crore. The company also reported significant margin expansion, with EBITDA margin expanding by 184 basis points and net profit margin by 198 basis points on a year-on-year basis, reflecting operational efficiencies and a favorable product mix.

The Dadri facility is a key growth driver, having achieved 30% capacity utilization by December 2024, ahead of schedule. The company is on track to fully commission its initial 3.5 lakh tonne capacity by the end of FY25. Due to strong demand, plans are already in motion to further expand Dadri's capacity from 3.5 lakh tonnes to 4.2 lakh tonnes within the first two quarters of FY26, requiring an additional CAPEX of ₹70-80 crores. This expanded capacity is projected to generate approximately ₹3,500 crores in revenue upon full utilization.

The company has successfully commenced production in its specialty wire vertical, focusing on high-value-added products like bead wire, hose wire, and steel tyre cord. A pilot project with an initial capacity of 20,000 tonnes is expected to generate around ₹300 crores in revenue. Management indicated that EBITDA margins for steel cord are anticipated to be in the 20-25% range, significantly higher than existing product lines. Initial market feedback has been positive, with sales of 100-120 tonnes in January, and product approvals are progressing ahead of schedule.

Bansal Wire is advancing its plans for stainless steel rod backward integration in Sanand, Gujarat. Land acquisition is in process, with possession expected within a week. The company aims to finalize equipment orders within the next two months and expects to commence production by mid-FY27. This strategic move, managed by the newly created subsidiary BWI Steel Private Limited, is intended to enhance control over raw material costs and improve processing advantages.

Addressing concerns about competition from Chinese manufacturers in specialty wire, management outlined a clear strategy. They highlighted advantages such as lower logistics costs as a domestic producer, a 10% import duty benefit, and a focus on providing superior service and proximity to customers. This approach allows the company to position itself as an alternative to imports and command a higher price than Chinese competitors, as evidenced by current order books for hose wire.

The company experienced strong demand across all sectors, including automotive, in Q3 FY25, despite a typical slowdown in December. Management noted that sales are not a challenge, and the focus remains on increasing production to meet customer demand. Exports also showed robust growth, reaching approximately ₹250 crores by Q3 FY25 compared to ₹219 crores in the corresponding period last year, underscoring strong international demand for their products.