We believe that the recent acquisitions will expand the company?s
product portfolio, strengthen its market position and create a strong platform for growth
to achieve its long-term objectives.
Dear Shareholders,
I am pleased to present to you the annual report of RHI Magnesita India
Ltd. for the financial year ended 31 March, 2023.
Despite the challenges posed by macro-economic volatility and
geo-political tensions,
RHI Magnesita India Ltd. has sustained its growth and performed well
during the year. We have continued to strengthen our position as a leading refractory
company, driven by our commitment to innovation, customer focus, and operational
excellence.
Birth of a Responsible Market Leader
In the latter part of the financial year, the company successfully
completed two strategic acquisitions in the refractory business, to strengthen its
long-term growth strategy.
The first acquisition was the Indian refractory business of Dalmia
Bharat Refractories Limited ("DBRL"), completed on 6 January, 2023 through a
share swap consideration. The second acquisition was Hi-Tech Chemicals' refractory
business, completed on 31 January, 2023 through a slump sale as a going concern. These
acquisitions would expand the company's product portfolio and strengthen its position in
the Indian market, as well as for exports. We believe
that these acquisitions will create a strong platform for growth and
help the company to achieve its long-term objectives. Subsequent to the integration of the
two leading refractory makers with RHI Magnesita India ("RHIM"), the company has
emerged as the market leader that aims to act as a responsible leader that would continue
to invest in innovative technologies to build a sustainable business.
Continued Growth
During the year, RHIM successfully implemented several initiatives to
enhance its production capability and efficiency, while maintaining high standards of
quality and safety. Our investments in making import substitute products through
technology exchange with the parent company have also yielded promising results, enabling
us to offer innovative and sustainable solutions to meet the evolving needs of our
customers.
In the year ended 31 March, 2023, your company's revenue grew 37%
year-on-year to Rs 27,263 million, while Adjusted EBITDA grew 11.5% to Rs 4,388 million.
Though, impairment of investment in a subsidiary and cost of integration of the two new
acquisitions adversely impacted the PAT, which is expected to be of one-time in nature.
Doing Business Responsibly
While the company continues to grow in the market, we have put in place
well-defined and adequate internal control system commensurate to the size of the business
and the nature of the industry we operate in. The Internal Control system ensures
safeguarding and protecting the assets of the company. RHIM Code of Conduct sets out our
commitment to uphold high ethical standards wherever we operate. We train our employees on
ethical business conduct, and we expect them to follow the Code. Any reported ethical
concerns are investigated thoroughly by our Internal Audit, Risk & Compliance team.
Sustainability & Social Commitment
At RHI Magnesita India Ltd., we are committed to sustainability and
responsible business practices.
We recognize the potential impact of our operations on the environment
and society, and we are taking proactive steps to mitigate these risks. We have
implemented several initiatives to reduce our carbon footprint, optimize our resource
utilization, and promote social responsibility. During the year, several Corporate Social
Responsibility initiatives were also implemented benefitting more than one lac people from
underprivileged sections.
Thanking you
I would like to take this opportunity to express my sincere gratitude
to our shareholders, customers, employees, and partners for their unwavering support and
commitment to our business. I also extend my appreciation to our Board of Directors for
their valuable guidance and leadership.
In conclusion, I am confident that RHI Magnesita India Ltd. is
well-positioned to capitalize on the opportunities and challenges A of the future, and we
remain committed to delivering ^A -
long-term value to our stakeholders.