RHI Magnesita India (534076) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue in Q3 FY25, surpassing INR 1,000 crores, driven by disciplined execution, shipment growth, market share gains, and strategic expansion despite challenging market conditions and increased import competition.

• Strategic initiatives in iron making, DRI, and pellet business drove 7% growth; steel revenue increased 8% despite market headwinds.

• Recovery in 4PRO business and growth in cement shipments contributed to overall performance.

• Board approved unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2024.

• Financial statements reviewed by Price Waterhouse Chartered Accountants LLP, with no material misstatements identified.

Financial highlights

• Q3/FY2025 consolidated revenue grew 17% sequentially to INR 1,011 crores (Rs. 101,070 lakh), with a 20% increase in shipments and steady production at 86 kt.

• EBITDA rose 8% quarter-on-quarter to INR 132 crores (₹13,192 lakh), with EBITDA margin at 13.1%.

• Profit after tax for Q3 FY25 increased 4% sequentially to INR 4,773.48 lakhs.

• Working capital intensity improved to 35%, with better DSO, DIO, and DPO metrics.

• Dividend payment of INR 51 crores and ECB loan repayment completed; net debt/EBITDA remains flat at 0.3x.

Outlook and guidance

• Margins expected to remain under pressure in the near term due to raw material inventory lag and limited pricing power; margin recovery to 15% targeted from Q2 FY2026, contingent on raw material cost normalization and/or successful price increases.

• Volume growth guidance remains at 8%-9% annually, aiming to outpace market growth.

• Management expects continued growth driven by strategic initiatives and market share expansion in key segments.

• Long-term working capital intensity target set at 30%.

• No explicit forward-looking guidance provided, but impairment provisions reflect reassessment of future business projections.