Rain Industries (RAIN) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw continued safety improvements, with a TRIR of 0.2 and only one recordable incident, as OSHA safety norms rollout nears completion in the cement segment.

• The group operates in Carbon, Cement, and Advanced Materials segments, serving global industries with vertically integrated production and logistics.

• Unaudited consolidated results for the quarter and nine months ended September 30, 2024, were reviewed and approved by the Board, with an unmodified limited review report from the statutory auditors.

• Strategic focus remains on cost optimization, margin recovery, and capacity utilization, especially in the carbon segment.

• New demonstration plant for battery anode materials in Canada and joint development agreements position the group for growth in the EV and battery markets.

Financial highlights

• Consolidated revenue from operations for Q3 2024 was ₹39,342.79 million, down from ₹41,602.64 million in Q3 2023; adjusted EBITDA was ₹2.92 billion.

• Adjusted net loss after tax for Q3 2024 was ₹1,549.37 million, with an adjusted loss per share of ₹4.94.

• Carbon segment revenue fell 5.4% year-over-year to INR 27.81 billion, with a 21% drop in average blended realizations despite higher CPC volumes.

• Advanced materials segment revenue decreased 1.5% year-over-year to INR 8.45 billion, with an 8.8% volume increase offset by a 9.5% drop in realizations.

• Cement segment revenue declined 19.2% year-over-year, driven by an 8.8% fall in realizations and 11.3% lower volumes.

Outlook and guidance

• Margin pressures are expected to persist through 2024, with improvement projected in H1 2025 due to strategic initiatives and market recovery.

• CPC volumes are expected to remain strong in Q4 2024 and into 2025, supported by relaxed Indian import restrictions.

• Net debt-to-EBITDA ratio is projected to improve from 4.3x to around 3.0x as performance recovers and debt is paid down.

• Government infrastructure investments in South India expected to drive cement demand.

• Sustainable cost-saving measures being implemented across all geographies.