Ratnamani Metals & Tubes expects the operating margins to increase in Q2 of 2006-07 as it is producing steel pipes for a niche oil & gas segment and better performance in Q2 as compared to Q1.

Mr Prakash M Sanghvi CMD of Ratnamani Metals & Tubes during an interview with CNBC-TV18 said “Operating margins are going up because we operate in a niche market of petrochemical and refinery pipes. Although there are no pressures on margins, there is a bit of pressure on raw materials as commodities and steel prices are on an upward trend.”

Mr Sanghvi said “There is always a pressure in Q1 of any financial year. So the next quarter will be definitely better and we will have a good growth of 20% of Q1.”

Ratnamani’s current order book position stands at Rs 350 crore in both divisions; stainless steel as well as carbon steel tubes.