Rain Industries (RAIN) Q4 2024 earnings summary

Executive summary

• Q4 2024 adjusted EBITDA reached INR 3.9 billion, with full-year EBITDA at INR 14.98 billion, reflecting improvement but still below normalized targets due to raw material challenges.

• Q4 2024 revenue from operations was ₹36.76 billion, with an adjusted net loss after tax of ₹1.21 billion.

• Safety performance improved, achieving a TRIR of 0.13 and only two minor recordable incidents in Q4 2024.

• Strategic cost optimization and operational adjustments were implemented in H2 2024 to align with demand and reduce fixed costs.

• Aluminium was the largest end-customer industry, accounting for 42% of revenue in CY 2024.

Financial highlights

• Q4 2024 consolidated revenue was ₹36.76 billion, down from ₹41.01 billion in Q4 2023.

• Adjusted EBITDA margin improved to 10.6% in Q4 2024 from 6.8% in Q4 2023.

• Adjusted loss per share at ₹3.60 in Q4 2024, compared to ₹5.83 in Q4 2023.

• Maintenance CapEx and plant turnarounds totaled US$78 million in 2024.

• Liquidity at US$428 million, including cash balance of US$219 million.

Outlook and guidance

• CPC sales volumes are expected to increase in 2025 as Indian production ramps up and global blend strategy resumes.

• The carbon segment anticipates normalized margins in 2025 due to rising CPC prices and stabilized GPC costs.

• Cement segment expects 8% sales growth in 2025, driven by rural and urban demand and government infrastructure spending.

• R&D focus on battery anode and energy storage materials, leveraging new joint development and government support.

• Sustainable cost-saving measures expected to enhance long-term profitability.