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Hot Pursuit News

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(07 Nov 2024, 09:54)

Rain Industries slips as Q3 net loss widens to Rs 155 crore

Rain Industries fell 3.95% to Rs 157.95 after the company reported consolidated net loss of Rs 154.94 crore in Q3 CY24 as compared with net loss of Rs 65.75 crore in Q3 CY23.


Revenue from operations declined 5.43% YoY to Rs 3,934.28 crore in the quarter ended 30 September 2024.

Carbon sales volumes during Q3 CY24 were 653,000 metric tonne, an increase of 19.8% as compared to 545,000 metric tonne in Q3 CY23. The increase in volumes was driven by higher CPC volumes due to higher capacity utilization of Indian CPC plants post the relief granted by Honorable CAQM in February 2024 and implementation of the same during the third quarter.

During Q3 2024, the average blended realisation decreased by 21% on account of lower market quotations across all regions. There was an appreciation of EURO against Indian Rupee by approximately 2.3% and an appreciation of USD against Indian Rupee by approximately 1.3%. Overall, due to the aforesaid reasons, revenue from the carbon segment decreased by approximately 5.4% in Q3 CY24, as compared to Q3 CY23.

Advanced Materials sales volumes during Q3 CY24 were 74,000 metric tonnes, an increase of 8.8% YoY, primarily driven by higher throughput from our HHCR plant supported by the Red Sea crisis and higher demand.

During Q3 2024, average realisations decreased by 9.5% due to fall in commodity prices offset by an appreciation of the Euro against the Indian Rupee by approximately 2.3%. Due to the aforesaid reasons, revenue from the Advanced Materials segment decreased by about 1.5% during Q3 CY24, as compared to Q3 CY23.

Cement segment revenue decreased by 19.2% during Q3 CY24 as compared to Q3 CY23, due to decrease in realisations by 8.8% and decrease in volumes by 11.3% due to extended monsoon in key markets.

During Q3 2024, adjusted EBITDA declined by 22.43% YoY to Rs 291.8 crore and adjusted EBITDA margin contracted to 7.4% in Q3 CY24 from 9% in Q3 CY23.

Finance costs were Rs 234 crore during the quarter as compared to Rs 242 crore in Q3 CY23. The decrease was primarily on account of lower average working capital borrowings partially offset by appreciation of US Dollar and Euro against Indian Rupee compared to Q3 2023.

The company reported pre-tax loss of Rs 107.69 crore in Q3 CY24 as compared with pre-tax loss of Rs 19.54 crore posted in same quarter previous year.

As at September 2024, the company had a gross debt of $867 million (including working capital debt of $102 million), cash and cash equivalents of $241 million (including restricted cash), deferred finance cost of $17 million and net debt of $711 million.

Rain Industries is a holding company with subsidiaries engaged in the manufacturing of cement, CPC, coal tar pitch and downstream products, including resins, modifiers and superplasticisers.


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