Shares of Ratnamani Metals & Tubes Ltd surged more than 10% on May 11 after the company reported better-than-expected earnings.

The company posted a net profit of Rs 194 crore in the March quarter, up 71% from Rs 113 crore a year ago. Revenue rose 53% year-on-year to Rs 1,505.64 crore.

The board has approved the raising of Rs 500 crore through non-convertible bonds. The company said the bonds are intended to be issued in one or more tranches in a private placement.

In a recent announcement, the company outlined plans to expand its stainless steel pipe cold processing line. The company is investing around Rs 400 crore to enhance its spiral SAW capacity. It said these strategic investments are expected to aid the company’s growth beyond the next financial year, positioning it for long-term success.

Ratnamani Metals specializes in manufacturing stainless steel pipes and carbon steel pipes. In the stainless steel segment, the company offers seamless and welded pipes.

In the carbon steel pipe business, Ratnamani Metals produces electric resistance welded (ERW), HSAW (submerged helical arc welded) and longitudinal submerged arc welded (LSAW) pipes.

The stock was trading at Rs 2,460 at 10.05 am on the National Stock Exchange, up 9.83%.